OUTSIDE INFLUENCES ON MONETARY-POLICY - A SUMMARY OF RECENT FINDINGS

This paper reports on a program that begun in 1985 to research politic al and private pressures on monetary policy. The program developed a n umber of measures of outside pressures on monetary policy, identified the time periods and circumstances under which the Federal Reserve was responsive to these measures, and indicated how different classes of Fed officials responded to certain of these pressures. Initial finding s appear in a number of journal articles from 1987 to 1992. Havrilesky (1993) extends and refines these findings by employing new and larger data sets. Subsequent articles amplify the findings by estimating mon etary policy reaction functions that specifically introduce outside in fluences together with state-of-the-economy measures as explanatory va riables.