Timeliness and the Fed's Daily Tactics

50 Pages Posted: 14 Jan 2013  

Scott T. Fullwiler

Wartburg College; Bard College - The Levy Economics Institute

Date Written: August 1, 2002

Abstract

Recognizing that analysis of the daily activities have recently become a standard part of the monetary economics literature, this paper provides a detailed description of the Fed’s daily tactics from an institutionalist perspective. The three relevant categories of time in the Fed’s daily operations — daily, maintenance period, and seasonal — are described within the context of the institutional working rules giving rise to each category. This framework is used to explain recent events in monetary policy implementation. The final section of the paper illustrates how the discussion of time and timeliness in the Fed’s daily tactics can be used to inform research on traditional topics in monetary economics and argues that (1) the payments system, rather than reserve requirements, is the proper starting point for analysis of the Fed’s daily tactics; (2) there is no liquidity effect in the federal funds market; and (3) direct control over the monetary base is not possible.

Keywords: central bank operations, liquidity effect, quantitative easing

JEL Classification: E50, E51, E52, E58

Suggested Citation

Fullwiler, Scott T., Timeliness and the Fed's Daily Tactics (August 1, 2002). Available at SSRN: https://ssrn.com/abstract=2200657 or http://dx.doi.org/10.2139/ssrn.2200657

Scott T. Fullwiler (Contact Author)

Wartburg College ( email )

222 Ninth St. NW
Waverly, IA 50677
United States

Bard College - The Levy Economics Institute ( email )

Blithewood
Annandale-on-Hudson, NY 12504-5000
United States

Paper statistics

Downloads
203
Rank
119,617
Abstract Views
1,174