; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "On the Need for a New Approach to Analyzing Monetary Policy"; ; "batchuser@example.com"; "Kehoe, Patrick J.", "Atkeson, Andrew"; "Federal Reserve Bank of Minneapolis"; "E58 - Central Banks and Their Policies", "E50 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General", "E60 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General", "E52 - Monetary Policy"; "We present a pricing kernel that summarizes well the main features of the dynamics of interest rates and risk in postwar U.S. data and use it to uncover how the pricing kernel has moved with the short rate. Our findings imply that standard monetary models miss an essential link between the central bank instrument and the economic activity that monetary policy is intended to affect, and thus we call for a new approach to monetary policy analysis. We sketch a new approach using an economic model based on our pricing kernel. The model incorporates the key relationships between policy and risk movements in an unconventional way: the central bank’s policy changes are viewed as primarily intended to compensate for exogenous business cycle fluctuations in risk that threaten to push inflation off target. This model, while an improvement over standard models, is considered just a starting point for their revision."^^; "2008-09-08"; "2019-06-04T17:14:03.590382292+00:00"^^; "https://doi.org/10.21034/sr.412"; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "2020-09-16T17:09:28.583493595+00:00"^^; "https://creativecommons.org/licenses/by-nc/4.0/"; "Research Paper"; "393", "39"; "Staff report (Federal Reserve Bank of Minneapolis. Research Department)"; "412"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Research Department"; """Published in _NBER Macroeconomics Annual_ (Vol. 23, 2008, pp. 389-426), https://doi.org/10.1086/593091. An earlier version of this Staff Report circulated as [Working Paper 662](https://doi.org/10.21034/wp.662)."""^^; ; "Publication" . ; .