Reports from University of California Irvine Add New Data to Findings in Investment (The Macroeconomic Effects of the Federal Reserve’s Conventional and Unconventional Monetary Policies): Investment

2024 JUL 09 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Current study results on Investment have been published. According to news reporting from Irvine, California, by NewsRx editors, the research stated, “I separately identify and estimate the effects of innovations to the Federal Reserve’s federal funds rate, forward guidance, and large-scale asset purchase (LSAP) policies on the US economy. I extend the high-frequency identification strategy of Bauer and Swanson (NBER Macroecon Annu 37:87-155, 2023b) for monetary policy VARs by allowing each of the above policies to have possibly different economic effects.”

The news correspondents obtained a quote from the research from the University of California Irvine, “I follow Swanson (J Monetary Econ 118:32-53, 2021) and Swanson and Jayawickrema (Speeches by the Fed Chair Are More Important than FOMC Announcements: An Improved High-Frequency Measure of US Monetary Policy Shocks. University of California, Irvine, 2024) to separately identify federal funds rate, forward guidance, and LSAP components of monetary policy announcements using high-frequency interest rate changes around the Federal Open Market Committee (FOMC) announcements, post-FOMC press conferences, FOMC meeting minutes releases, and speeches and testimony by the Fed Chair and Vice Chair.”

According to the news reporters, the research concluded: “I estimate that federal funds rate shocks had the most powerful effects on the US economy, followed by shocks to forward guidance and, lastly, LSAPs, although the standard errors around each of these estimates are substantial.”

This research has been peer-reviewed.

For more information on this research see: The Macroeconomic Effects of the Federal Reserve’s Conventional and Unconventional Monetary Policies. IMF Economic Review, 2024. IMF Economic Review can be contacted at: Palgrave Macmillan Ltd, Brunel Rd Bldg, Houndmills, Basingstoke RG21 6XS, Hants, England.

Our news journalists report that additional information may be obtained by contacting Eric T. Swanson, University of California Irvine, Dept. of Economics, 3151 Social Sci Plaza, Irvine, CA 92617, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1057/s41308-024-00250-1. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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