A Dove to Hawk Ranking of the Martin to Yellen Federal Reserves

13 Pages Posted: 22 Nov 2014 Last revised: 9 Oct 2019

See all articles by Linus Wilson

Linus Wilson

University of Louisiana at Lafayette - College of Business Administration

Date Written: October 10, 2019

Abstract

This note ranks the Federal Reserves based on the tenure of their chairs from William McChesney Martin, Jr. to Janet L. Yellen, using data from 1958 through 2018. Inflation “doves” are willing to tolerate more inflation than inflation “hawks.” Comparing the Taylor (1993) rule and core inflation to the effective fed funds rates, it is found that the Yellen Fed is the most dovish Fed since 1958. Controlling for the Fed’s dual mandate of low unemployment and low inflation the Yellen Fed kept Fed funds rates significantly lower than prior Feds. The Yellen Fed had 292 to 306 basis points lower Fed funds rates than its predecessors after controlling for economic conditions.

Keywords: dove, Fed funds rates, Federal Open Market Committee, Federal Reserve, hawk, inflation, interest rates, monetary policy, overnight lending, output gap, Janet Yellen, Taylor rule, unemployment, wage inequality

JEL Classification: E52, E58

Suggested Citation

Wilson, Linus, A Dove to Hawk Ranking of the Martin to Yellen Federal Reserves (October 10, 2019). Available at SSRN: https://ssrn.com/abstract=2529195 or http://dx.doi.org/10.2139/ssrn.2529195

Linus Wilson (Contact Author)

University of Louisiana at Lafayette - College of Business Administration ( email )

Department of Economics & Finance
214 Hebrard Blvd., Room 326
Lafayette, LA 70504-0200
United States
(337) 482-6209 (Phone)
(337) 482-6675 (Fax)

HOME PAGE: http://www.linuswilson.com

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
111
Abstract Views
721
rank
258,536
PlumX Metrics