What is MacroWeb?

This period of expansionary policy lasted three years and five months (forty-one total months). During this period, the federal funds rate targets changed about seven times. The changes were a drop of about ¼% each time. Actual federal funds rates differed from the targets by .10 - .31. The discount rate changed about four times over the same period from ½% to ¼% up or down.

At the beginning of this period, GDP was growing at 1.5% to 2% per year. Inventory levels had risen during this time, which could have led to cutbacks and an increase in unemployment. Interest rates and inflation however were low.

By the end of this period, unemployment had fallen, as jobs in the market increased. Intermediate and long-term interest rates remained at a relatively low rate, while inflation also remained low.

Who is Dave Tufte?

Copyright, Jay Webb, 2001.