Impact of Money Substitutes on Monetary Control as it Affects Interest Rates and Economic Activity: Hearings Before the Subcommittee on Domestic Monetary Policy of the Committee on Banking, Finance, and Urban Affairs, House of Representatives, Ninety-seventh Congress, Second Session, March 3 and 4, 1982 |
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Common terms and phrases
accounts average bank reserves BARNARD believe billion bonds Chairman FAUNTROY changes conduct of monetary Congress debt deficit demand deposits depository institutions deregulation economy effect Eurodollars Fed's Federal funds federal funds rate Federal Reserve financial innovation financial institutions financial markets fiscal going Government Governor GRAMLEY growth of money growth rate HEINEMANN HESTER high interest rates impact increase inflation inflationary investment JAMES COYNE long-term M₁ M1 growth M1 velocity M₂ market mutual funds ment MMMFs mone monetary aggregates monetary base Monetary Control Act monetary growth monetary policy money and credit money fund money growth money market funds money market mutual money multiplier money stock money supply nominal GNP PATMAN percent percentage points period problem question real interest rates recent recession reduce regulation relationship repurchase agreements reserve requirements Reserve's savings deposits short-term slow SPRINKEL stable subcommittee tary tion transaction balances transactions purposes turnover rate WEBER
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Page 26 - January February March April May June July August September October November December 1981 January February March April May...
Page 110 - It is often stated that such financial innovations as money-market funds undermine the conduct of monetary policy. Statistical support for this assertion is dubious. What would have to be demonstrated is that financial innovation — which is to a large extent the result of policy-imposed constraints on the financial system in an inflationary environment — has made it more difficult to achieve a given monetary target, and that the link between changes in nominal GNP and changes in the monetary...
Page 33 - I yield as much time as you may consume to the gentleman from Texas, Mr. Paul. Mr. PAUL. Thank you, Mr. Chairman.
Page 133 - M1 plus savings and small-denomination time deposits at all depository institutions, overnight repurchase agreements at commercial banks, overnight Eurodollars held by US residents other than banks at Caribbean branches of member banks, and money market mutual fund shares.
Page 105 - Shaded areas, except for the mini-recession of 1966-1967, represent periods of recession as designated by the National Bureau of Economic Research. Sources...
Page 155 - If this were not the case, there would be no point in having the two phrases used as alternative tests in the statute.
Page 60 - ... deficits in the Federal budget will help to strengthen the belief that anti-inflationary policies will be maintained. That, in turn, will help lower the costs of adjusting to lower rates of inflation. In short, the credibility of monetary policy is influenced by the fiscal policy that accompanies it. The monetary system is evolving toward one in which the Federal Reserve will have very close control over M l , suitably redefined from time to time, through control of reserves.
Page 146 - M l , suitably redefined from time to time, through control of reserves. With uniform reserve requirements on transaction accounts, there will be relatively little variability in the ratio of Ml to the monetary base. Longer term movements in this ratio can be offset by open market operations. Monetary aggregates other than Ml may serve as useful indicators of the effects of policy actions, but they will not be directly...
Page 35 - And I do not know how we are going to deal with that, but I think that we cannot pitch and hold these costs.
Page 23 - We have developed estimates of that kind at the Federal Reserve Board. The Federal Reserve Bank of New York has also done some work in this area that was published recently in the Quarterly Review of the bank.