Explore "fool in the shower," Milton Friedman's metaphor explaining monetary policy's timing challenges and how overcorrection can impact the economy's stability.

The Federal Reserve doesn’t need to adopt a “Monetary Policy Rule.” Not only would the central bank shed the pretense of rules-based constraints on its power during times of upheaval and uncertainty ...

Surveys of professional economic forecasters and financial market data can reveal public perceptions about the future conduct of monetary policy. Current estimates suggest that both professional ...

This data series is part of the Center for Monetary Research. Monetary Policy Surprises data capture the exogenous changes in interest rates over tight windows around the monetary policy announcements ...

We investigate the impact of high frequency monetary policy shocks in Brazil using daily data and Rigobon’ s identification via heteroskedasticity. We show that positive changes in interest rates ...

This paper examines how housing market overvaluation—measured by the price-to-rent ratio and its deviations from long-term trends—affects the transmission of monetary policy. Using U.S.

A rules-based approach is envisaged once inflation declines to the 3–4% range, with policy interest rate responding accordingly ...