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September/October 1999

Posted 1999-09-01

Measuring Monetary Policy Inertia in Target Fed Funds Rate Changes

by Michael J. Dueker

Recent research has grappled with an apparent paradox: Why would a central bank that is focused primarily on inflation control exhibit signs of inertia when making policy adjustments? The author argues that fully characterizing the policy inertia is a precondition towards resolving the apparent paradox.

Posted 1999-09-01

The U.S. Trade Deficit and the "New Economy"

by Michael R. Pakko

Amidst the overall strength and longevity of the U.S. economic expansion of the 1990s, a growing current account deficit is one indicator that often is viewed with concern. The author discusses some basic economic principles about current accounts and how they relate to the U.S. experience during the 1990s.

Posted 1999-09-01

Seasonal Production Smoothing

by Donald S. Allen

Empirical tests of the production-smoothing hypothesis have yielded mixed results. This article looks for and finds evidence of seasonal production smoothing in 15 out of 25 manufacturing series and 8 out of 10 retail series, using detrended seasonally unadjusted data.

Posted 1999-09-01

Credit Unions and the Common Bond

by William R. Emmons and Frank A. Schmid

A distinguishing feature of credit unions is the legal requirement that members share a common bond. This organizing principle recently became the focus of national attention when the Supreme Court and the U.S. Congress took opposite sides in a controversy regarding the number of common bonds (fields of membership) that could coexist within a single credit union.