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    This article has been cited by the following publications. This list is generated based on data provided by CrossRef.

    Caporale, Tony and Choi, Kyongwook 2009. The start of interest rate smoothing in the US: is it a monetary or fiscal story?. Applied Economics, Vol. 41, Issue. 11, p. 1361.

    Yeung, David W. K. 2007. Dynamic games in management science with interest rate uncertainty. Computational Management Science, Vol. 4, Issue. 2, p. 205.

    Caporale, Barbara 2003. The Influence of Economists On the Federal Reserve Act. Scottish Journal of Political Economy, Vol. 50, Issue. 3, p. 311.

    Caporale, Barbara and Caporale, Tony 2003. Investigating the effects of monetary regime shifts. Economics Letters, Vol. 80, Issue. 1, p. 87.


Interest Rate Uncertainty and the Founding of the Federal Reserve

  • Tony Caporale (a1) and Barbara McKiernan (a2)
  • DOI:
  • Published online: 01 March 2009

This article examines the impact of what is undoubtedly the most important monetary regime change in U.S. history: the founding of the Federal Reserve System. We find, using a (G)ARCH model, a significant reduction in interest rate uncertainty following the founding of the Fed. Additionally, we show that the passage of the Aldrich-Vreeland Act in 1908, another significant change in policy, also led to a reduction in interest rate uncertainty. These results are robust to alternative interest rate models, as well as to incorporating the impact of other events important to financial markets in our sample.

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Clemens Kool . “War Finance and Interest Rate Targeting: Regime Changes in 1914–1918.” Explorations in Economic History 32, no. 4 (1995): 365–82.

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The Journal of Economic History
  • ISSN: 0022-0507
  • EISSN: 1471-6372
  • URL: /core/journals/journal-of-economic-history
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