The Influence of the Federal Advisory Council on Monetary Policy

The Federal Advisory Council consists of twelve bankers, elected by Federal Reserve Bank directorates, who advise the Federal Open Market Committee every three months on their desired direction for monetary policy. This paper tests the conjecture that the Council's directives to the Committee c...

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Bibliographic Details
Published in:Journal of money, credit and banking credit and banking, 1990-02, Vol.22 (1), p.37-50
Main Author: Havrilesky, Thomas
Format: Article
Language:English
Subjects:
Analysis
Bank credit
Banking industry
Banking policy
Councils
Credit policies
Economic indices
Federal funds rate
Federal legislation
Federal Reserve Bank
Federal Reserve monetary policy
Influence
Interest groups
Lobbying
Mathematical models
Monetary aggregates
Monetary policy
Policy making
Political interest groups
Private
Statistical analysis
Studies
U.S.A
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Summary:The Federal Advisory Council consists of twelve bankers, elected by Federal Reserve Bank directorates, who advise the Federal Open Market Committee every three months on their desired direction for monetary policy. This paper tests the conjecture that the Council's directives to the Committee contain information that predicts subsequent changes in interest rates and Committee directives. Regression equations and Granger causality tests do not disprove the conjecture. This is the first hard evidence of private interest group influence on monetary policy. (Printed by permission of the publisher.)
ISSN:0022-2879
1538-4616
DOI:10.2307/1992126