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The Discount Rate and Market Interest Rates: Theory and Evidence - Review

Daniel L. Thornton discusses the theoretical links between the Federal Reserve’s discount rate and market interest rates and presents some empirical evidence on the extent of this link. He finds that, both in theory and practice, the direct relationship between the discount rate and money market rates is extremely weak.

research.stlouisfed.org/.../08/01/the-discount-rate-and-market-interest-rates-theory-and-evidence/

The FOMC’s Balance-of-Risks Statement and Market Expectations of Policy Actions - Review

In January 2000, the Federal Open Market Committee (FOMC) instituted the practice of issuing a “balance of risks” statement along with their policy decision immediately following each FOMC meeting. Robert H. Rasche and Daniel L. Thornton evaluate the use of the balance-of-risks statement and the market’s interpretation of it. 

research.stlouisfed.org/.../

How Effective Is Central Bank Forward Guidance? - Review

This article investigates the effectiveness of forward guidance for the central banks of New Zealand, Norway, Sweden, and the United States. The authors test whether forward guidance improved market participants’ ability to forecast future short-term and long-term rates relative to several benchmarks.

research.stlouisfed.org/.../review/2015/12/07/how-effective-is-central-bank-forward-guidance

Financial Innovation Deregulation and the "Credit View" of Monetary Policy - Review

As analysts search for explanations for the protracted recovery from the last recession, a great deal of attention has been focused on the "credit view” of monetary policy, which argues that monetary policy affects the economy through the direct effect of policy actions on the supply of depository institutions’ credit.

research.stlouisfed.org/.../