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A New Daily Federal Funds Rate Series and History of the Federal Funds Market, 1928-54.

Authors :
Anbil, Sriya
Carlson, Mark
Hanes, Christopher
Wheelock, David C.
Source :
Review (00149187); 2021 1st Quarter, Vol. 103 Issue 1, p45-70, 26p
Publication Year :
2021

Abstract

This article describes the origins and development of the federal funds market from its inception in the 1920s to the early 1950s. We present a newly digitized daily data series on the federal funds rate from April 1928 through June 1954. We compare the behavior of the funds rate with other money market interest rates and the Federal Reserve discount rate. Our federal funds rate series will enhance the ability of researchers to study an eventful period in U.S. financial history and better understand how monetary policy was transmitted to banking and financial markets. For the 1920s-30s, our series is the best available measure of the overnight risk-free interest rate, better than the call money rate that many studies have used for this purpose. For the 1940s-50s, our series provides new information about the transition away from wartime interest rate pegs culminating in the 1951 Treasury-Federal Reserve Accord. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
00149187
Volume :
103
Issue :
1
Database :
Complementary Index
Journal :
Review (00149187)
Publication Type :
Academic Journal
Accession number :
148235813
Full Text :
https://doi.org/10.20955/r.103.45-70