This video ranks the Federal Reserves based on the tenure of their chairs from William McChesney Martin, Jr. to Janet L. Yellen, using data from 1958 through 2018.
This reading of “A Dove to Hawk Ranking of the Martin to Yellen Federal Reserves” by Linus Wilson.
Inflation “doves” are willing to tolerate more inflation than inflation “hawks.” Comparing the Taylor (1993) rule and core inflation to the effective fed funds rates, it is found that the Yellen Fed is the most dovish Fed since 1958.
The tenures of the following Federal Reserve (FOMC) Fed Open Market Committees are analyzed based on core inflation (CPI-U) without food or energy prices, unemployment, fed funds rates and the Taylor rule:
Janet L. Yellen
Ben S. Bernanke
Arthur F. Burns
G. William Miller
William McChesney Martin, Jr.
Paul A. Volcker
The paper quotes or cites some of the speeches of Janet Yellen.
It was written by Linus Wilson, Associate Professor of Finance at the University of Louisiana at Lafayette. The views expressed are his alone.
The Yellen Fed is found to be the most dovish in history based on its setting of short-term interest rates relative to inflation. This paper looks at the interest rate setting policy of the Federal Reserve going back to the chairmanship of William McChesney Martin, Jr. and ending with the Janet Yellen’s tenure as chair. The Yellen Fed lacked a recession or banking crisis that may have justified the negative real interest rate policy of the Bernanke Fed. For its four years, the Yellen Fed succeeded in having falling unemployment and low inflation with negative real interest rates.
The link to get the paper is below:
Wilson, Linus, A Dove to Hawk Ranking of the Martin to Yellen Federal Reserves Available at SSRN: https://ssrn.com/abstract=2529195 or http://dx.doi.org/10.2139/ssrn.2529195
The views expressed are of Linus Wilson alone.
Music by http://www.BenSound.com
Public domain photos of the Fed chairs from the U.S. Federal Reserve.
(c) 2018, Linus Wilson