Federal Reserve Bank of St. Louis Review

A quarterly research journal intended for an economically informed but broad readership—from the undergraduate student to the PhD. In print and online.


SEPTEMBER/OCTOBER 2011 Vol. 93, No. 5

Independence + Accountability: Why the Fed Is a Well-Designed Central Bank

In 1913, Congress purposefully created the Federal Reserve as an independent central bank, which created a fundamental tension: how to ensure the Fed remains accountable to the electorate without losing its independence. Over the years, there have been changes in the Fed’s structure to improve its independence, credibility, accountability, and transparency.

A Foreign Exchange Intervention in an Era of Restraint

The Japanese yen appreciated strongly and rapidly against other major currencies in the wake of the massive March 11, 2011, Tohoku earthquake. High volatility and disorder in financial markets prompted the G-7 authorities to jointly intervene to weaken the yen.

A Comprehensive Revision of the U.S. Monetary Services (Divisia) Indexes

The authors introduce a comprehensive revision of the Divisia monetary aggregates for the United States published by the Federal Reserve Bank of St. Louis, referred to as the Monetary Services Indexes (MSI). These revised MSI are available at five levels of aggregation, including a new broad level of aggregation that includes all of the assets currently reported on the Federal Reserve’s H.6 statistical release.

A Survey of Announcement Effects on Foreign Exchange Volatility and Jumps

This article reviews, evaluates, and links research that studies foreign exchange volatility reaction to macro announcements. Scheduled and unscheduled news typically raises volatility for about an hour and often causes price discontinuities or jumps.

NOTE: The table on pp. 368-369 was revised after publication.

Appendix

 


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