Arbeitspapier
Financial stability and the Fed: evidence from congressional hearings
This paper retraces how financial stability considerations interacted with U.S. monetary policy before and during the Great Recession. Using text-mining techniques, we construct indicators for financial stability sentiment expressed during testimonies of four Federal Reserve Chairs at Congressional hearings. Including these text-based measures adds explanatory power to Taylor-rule models. In particular, negative financial stability sentiment coincided with a more accommodative monetary policy stance than implied by standard Taylor-rule factors, even in the decades before the Great Recession. These findings are consistent with a preference for monetary policy reacting to financial instability rather than acting pre-emptively to a perceived build-up of risks.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 7657
- Klassifikation
-
Wirtschaft
Monetary Policy
Central Banks and Their Policies
Economic History: Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations: U.S.; Canada: 1913-
- Thema
-
monetary policy
financial stability
Taylor rule
text mining
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Wischnewsky, Arina
Jansen, David-Jan
Neuenkirch, Matthias
- Ereignis
-
Veröffentlichung
- (wer)
-
Center for Economic Studies and ifo Institute (CESifo)
- (wo)
-
Munich
- (wann)
-
2019
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Wischnewsky, Arina
- Jansen, David-Jan
- Neuenkirch, Matthias
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2019
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