Publications

197 publications found, searching for 'Monetary Policy '

• Working Paper No. 1108
  March 05, 2026

  Monetary Policy Transmission to Consumption: Inequalities by Gender and Race

  Aina Puig
  Abstract

  This paper estimates the causal effects of monetary policy shocks on household consumption, with additional analysis of labor market and income responses, disaggregated by gender and race. I find that…more

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• Working Paper No. 1106
  February 19, 2026

  Monetary Policy, Deposit Funding Shocks, and Bank Credit Supply: Bank-Level IV Evidence

  Chenning Xu
  Abstract

  This paper examines how monetary tightening transmits to bank credit supply through deposit funding conditions during the 2022–23 cycle. Using a quarterly panel of more than 3,800 US commercial banks,…more

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• Working Paper No. 1103
  January 08, 2026

  Legal Tender, Debt, and the Institutional Settlement of Monetary Obligations in English Law

  Neil Wilson, Richard Tye, and Andrew Berkeley
  Abstract

  This paper challenges the widespread public and institutional misconception that legal tender laws in English law compel creditors to accept payment in a specific form. We argue that legal tender…more

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• Policy Note No. 2025/10
  December 22, 2025

  The Fed Lowered Rates Again. Is It Really a Surprise?

  Yeva Nersisyan and L. Randall Wray
  Abstract

  The whole world was watching on December 10, 2025 to finally find out what the Fed was going to do. Big money bets were placed—would the Fed leave rates unchanged…more

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• Policy Note No. 2025/7
  September 19, 2025

  No, the Fed Is NOT Independent—It Is a Creature of Congress

  Yeva Nersisyan and L. Randall Wray
  Abstract

  In response to President Trump’s attack on the Federal Reserve, the natural critics of misguided monetary policy find themselves defending the Fed and the notion that the Fed is—and must…more

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• Working Paper No. 1091
  September 04, 2025

  Banking on Payments?

  Jörg Bibow
  Abstract

  For the past hundred years or more, payments have been primarily associated with banking, and banking as we know it today—being the result of many centuries of evolution—features a bundling…more

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• Working Paper No. 1085
  July 17, 2025

  Fiscal Deficit and Term Structure of Interest Rate Links on Corporate Investment

  Lekha S. Chakraborty and C. Prasanth
  Abstract

  Using high-frequency macro data from a financially deregulated regime, this paper examines whether there is any evidence of financial crowding out in India. The macroeconomic channel through which financial crowding…more

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• Working Paper No. 1076
  February 07, 2025

  The Rise of the Modern Monetary System

  L. Randall Wray
  Abstract

  This working paper integrates the credit money approach (associated with Post Keynesian endogenous money theory) with the state money approach (associated with Modern Money Theory) by drawing on Wray’s 1990…more

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• Working Paper No. 1075
  January 23, 2025

  The High Cost of the Strong Peso and Its Temporary Nature: The Case of Mexico

  Arturo Huerta G.
  Abstract

  The article analyzes why exchange rate stability has been prioritized in Mexico and why the national currency has appreciated; which policies and factors have made this possible, the costs and…more

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• Working Paper No. 1072
  December 12, 2024

  Macro-Financial Models of Canadian Dollar Interest Rate Swap Yields

  Tanweer Akram and Khawaja Mamun
  Abstract

  This paper analyzes the dynamics of Canadian dollar–denominated (CAD) interest rate swap yields. It applies autoregressive distributive lag (ARDL) models, using monthly time series data, to estimate the effects of…more

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• Working Paper No. 1071
  December 10, 2024

  Tilting at Windmills

  James K. Galbraith and Pavlina R. Tcherneva
  Abstract

  Originally issued as EDI Working Paper No. 14, May 2023 The Central Bank of the United States, the Federal Reserve, has a dual mandate to maintain both full employment and…more

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• Working Paper No. 1064
  December 06, 2024

  Seismic Shifts in Economic Theory and Policy from the Bernanke Doctrine to Modern Money Theory

  Pavlina R. Tcherneva and Éric Tymoigne
  Abstract

  Originally issued as EDI Working Paper No. 08, 2022  This paper evaluates the relationship between monetary and fiscal policy and the relative effectiveness of macroeconomic stabilization through the lens of…more

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• Working Paper No. 1063
  December 03, 2024

  Fiscal and Monetary Policy in an SFC Model of the Italian Economy

  Francesco Zezza
  Abstract

  Following the Great Financial Crisis of 2008–9, there has been a shift in mainstream economic policy modeling toward “realism,” with dynamic stochastic general equilibrium (DSGE) models partly diverging from the…more

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• Policy Note No. 2024/1
  October 11, 2024

  The Boy Who Cried Wolf About Government Debt

  Yeva Nersisyan and L. Randall Wray
  Abstract

  In a New York Times editorial, David Leonhardt recounts Aesop’s apocryphal story about the boy and the wolf, warning that while deficit hawks have so far been wrong, the growing government debt will eventually bite. He reports the economic plans of both presidential candidates would add to the debt that will soon exceed GDP and grow to 130 percent of annual output under a President Harris, or 140 percent with a Trump presidency.

  The story of the boy and the wolf was a fable, although it was within the realm of possibility. The fable of the debt wolf is not. While there are real world wolves—Leonhardt mentions climate catastrophe and autocratic leaders, and the authors would add rising inequality and the concentration of economic and political power in the hands of billionaires—authors Yeva Nersisyan and L. Randall Wray assert, federal debt is not one of them.

  Download Policy Note 2024/1 PDF (368.08 KB)
• Working Paper No. 1057
  October 09, 2024

  Rise and Fall of Mexican Super Peso: Heterodox Perspective versus Orthodoxy

  Laura Lisset Montiel-Orozco
  Abstract

  This working paper contrasts the neo-Keynesian and post-Keynesian theories of monetary policy for an open economy, highlighting the irrelevance of the orthodox theory and the explanatory capacity of heterodoxy for…more

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• Working Paper No. 1048
  April 19, 2024

  An Empirical Analysis of Swedish Government Bond Yields

  Tanweer Akram and Mahima Yadav
  Abstract

  This paper econometrically models the dynamics of Swedish government bond (SGB) yields. It examines whether the short-term interest rate has a decisive influence on long-term SGB yields, after controlling for…more

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• Working Paper No. 1046
  March 07, 2024

  The Aggregate Production Function and Solow’s “Three Denials”

  Jesus Felipe and John McCombie
  Abstract

  This paper offers a retrospective view of the key pillar of Solow’s neoclassical growth model, namely the aggregate production function. We review how this tool came to life and how…more

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• Working Paper No. 1034
  December 08, 2023

  Euro Interest Rate Swap Yields: A GARCH Analysis

  Tanweer Akram and Khawaja Mamun
  Abstract

  This paper models the month-over-month change in euro-denominated (EUR) long-term interest rate swap yields. It shows that the change in the short-term interest rate has an economically and statistically significant…more

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• Working Paper No. 1025
  August 01, 2023

  Unconventional Monetary Policy or Automatic Stabilizers?

  Nitin Nair
  Abstract

  The purpose of public policy, expansionary or contractionary, is to encourage the expansion of income, output, and employment. Theory decides the nature and kind of policy, and the underlying mechanics…more

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• Working Paper No. 1016
  February 23, 2023

  Monetary Policy and the Gender and Racial Employment Dynamics in Brazil

  Patricia Couto and Clara Brenck
  Abstract

  Monetary policy has been historically concerned with controlling inflation, using the interest rate as its main tool. However, such policies are not gender- or race-neutral. This paper explores econometrically the…more

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• Working Paper No. 1015
  February 20, 2023

  CBDC Next-Level: A New Architecture for Financial “Super-Stability” 

  Biagio Bossone and Michael Haines
  Abstract

  Fractional reserve regimes generate fragile banking, and full reserve regimes (e.g., narrow banking) remove fragility at the cost of suppressing the role of banks as lenders. A Central Bank Digital…more

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• Working Paper No. 1014
  February 16, 2023

  Chinese Yuan Interest Rate Swap Yields

  Tanweer Akram and Khawaja Mamun
  Abstract

  This paper models the dynamics of Chinese yuan (CNY)–denominated long-term interest rate swap yields. The financial sector plays a vital role in the Chinese economy, which has grown rapidly in…more

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• Working Paper No. 1012
  December 16, 2022

  An Analysis of UK Swap Yields

  Tanweer Akram and Khawaja Mamun
  Abstract

  John Maynard Keynes argued that the central bank influences the long-term interest rate through the effect of its policy rate on the short-term interest rate. However, Keynes's claim was confined…more

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• One-Pager
  December 07, 2022

  The Causes of Pandemic Inflation

  L. Randall Wray
  Abstract

  While the trigger for the Covid recession was unusual—a collapse of the supply side that produced a drop in demand—the inflation the US economy is now facing is not atypical,…more

  Download One-Pager No. 70 PDF (128.13 KB)