Dean Croushore

Robins School of Business
University of Richmond
1 Gateway Road
Richmond, VA 23173
Tel: 804-287-1961
Fax: 804-289-8878

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliation: University of Richmond

NBER Working Papers and Publications

November 1995Expectations and the Effects of Monetary Policy
with Laurence Ball: w5344
This paper examines the predictive power of shifts in monetary policy, as measured by changes in the federal funds rate, for output, inflation, and survey expectations of these variables. We find that policy shifts have larger effects on actual output than on expected output, suggesting that agents underestimate the effects of policy on aggregate demand. Our results help to explain the real effects of monetary policy, and they provide a strong rejection of the rational expectations hypothesis.

Published: Ball, Laurence and Dean Croushore. "Expectations And The Effects Of Monetary Policy," Journal of Money, Credit and Banking, 2003, v35(4,Aug), 473-484. citation courtesy of

National Bureau of Economic Research
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