• Julio J. Rotemberg


The Federal Reserve’s Abandonment of its 1923 Objectives of Monetary Policy. Julio J. Rotemberg, July 31, 2015, Paper. "The “Guides to Credit Policy” in the Federal Reserve’s Annual Report of 1923 specified that interest rates should be set so as to balance the benefits of meeting the credit needs of business with the dangers of speculative credit. This paper uses FOMC transcripts to study when these two objectives of monetary policy (meeting business needs and preventing speculative credit) ceased to be reiterated, so that they were effectively abandoned. It is demonstrated that this occurred in the mid-1960’s..." Link