Timothy Q. Cook
Thomas K. Hahn
Our Research Focus: Inflation & Monetary Policy
The standard empirical test of whether the Federal Reserve can influence interest rates is to regress interest rates on current and past (actual or unexpected) values of money growth. This literature generally finds little support for the view that the Fed can influence interest rates, except perhaps through the positive impact on inflation expectations of increases in money growth.
Tim Sablik
(804) 697-5464