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Published by: Harvard Business Publishing
Originally published in: 1985
Version: 4 February 2003
Length: 30 pages
Data source: Published sources

Abstract

Describes three years of the Volcker monetary policy experiment. The Federal Reserve changed the focus by its operating procedure from an interest rate instrument to a reserve instrument and it reaffirmed its commitment to hitting its preannounced monetary growth target. At the same time Congress initiated widespread deregulation of financial institutions. The case encourages discussion on the best strategy and implementation of monetary policy, the effect of deregulation on its conduct, the causes of the recession and disinflation, and the competitive implications of the recent changes in monetary policy for competitive institutions.
Location:
Other setting(s):
1979-1982

About

Abstract

Describes three years of the Volcker monetary policy experiment. The Federal Reserve changed the focus by its operating procedure from an interest rate instrument to a reserve instrument and it reaffirmed its commitment to hitting its preannounced monetary growth target. At the same time Congress initiated widespread deregulation of financial institutions. The case encourages discussion on the best strategy and implementation of monetary policy, the effect of deregulation on its conduct, the causes of the recession and disinflation, and the competitive implications of the recent changes in monetary policy for competitive institutions.

Settings

Location:
Other setting(s):
1979-1982

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