Author Archives: Menzie Chinn

Does the Fed Care about What’s Going On in the Rest of the World?

Ferrara and De Roux actually pose the question more tactfully, in their paper (Capturing international influences in U.S. monetary policy through a NLP approach)  presented at the ISF meetings here in Charlottesville. They look to see if in the FOMC minutes, international economic issues are mentioned in a way that, when converted to an index, shows up as statistically significant in a Taylor equation, and provide the answer “yes”.

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Inflation across Some Countries

The debate over causes of the inflation surprise in the US is dominated by focus on the fiscal policy and late tightening, among other things. I think it’s of interest to note (again!) that the spike in inflation was not US-specific. Here are two graphs I presented in today’s lecture in the ISF.

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