On September 26, 2018 at 4:15pm in Pettengill G21, “The Macroeconomic Effects of the Federal Reserve’s Unconventional Monetary Policies” was presented by David Reifschneider, Professor of Economics at Colby College and a member of the Federal Reserve Board.

Talk Topics:
> Does quantitative easing and forward guidance alter public perceptions of the implicit policy rule that the Fed would follow after liftoff from the zero lower bond?

> How much economic stimulus was provided by the estimated changes in the perceived policy rule and QE-related term premium effects?

Abstract:
This paper examines two questions about the efficacy of the Fed’s unconventional policy actions.  First, did quantitative easing and forward guidance alter public perceptions of the implicit policy rule that the Fed would follow after liftoff from the zero lower bound?  Based on estimates obtained from Blue Chip forecasts, the answer would appear to be yes.  Second, how much economic stimulus was provided by the estimated changes in the perceived policy rule and QE-related term premium effects?  Based on simulations of the FRB/US model, the Fed’s unconventional policy actions appear to have quickened the pace of recovery noticeably and modestly offset disinflationary pressures.

Sponsored by The Casey Lecture Fund for Economics