Artikel

Effectiveness of interest rate policy of the Fed in management of subprime mortgage crisis

The federal funds rate is one of the most important monetary policy instruments of Federal Reserve Bank of America. In this study, we analyze the effectiveness of Fed interest rate policy on different markets in the period between 1976 and 2016 through Markov regime-switching regression analysis. Results indicate that Federal funds' rate affects labor and housing markets with a few months' lag. However, the influence of Federal funds rate on inflation rate is quite limited. It is most probable that Fed employs alternative monetary instruments to regulate inflation. The most interesting results are obtained in the domain of personal savings. The interaction of personal savings and Federal funds rate is significant during both expansion and recession regimes.

Sprache
Englisch

Erschienen in
Journal: Journal of Risk and Financial Management ; ISSN: 1911-8074 ; Volume: 11 ; Year: 2018 ; Issue: 1 ; Pages: 1-11 ; Basel: MDPI

Klassifikation
Wirtschaft
Thema
subprime mortgage crisis
Fed
interest rate policy

Ereignis
Geistige Schöpfung
(wer)
Gunay, Samet
Georgievski, Bojan
Ereignis
Veröffentlichung
(wer)
MDPI
(wo)
Basel
(wann)
2018

DOI
doi:10.3390/jrfm11010009
Handle
Letzte Aktualisierung
10.03.2025, 11:42 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.

Objekttyp

  • Artikel

Beteiligte

  • Gunay, Samet
  • Georgievski, Bojan
  • MDPI

Entstanden

  • 2018

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