Research in Focus — Joseph Abadi of the Philadelphia Fed creates a model to analyze how central bank interest rate policy and balance sheet adjustments transmit through “inelastic” asset markets.

This special report highlights ongoing work to benchmark the stance of monetary policy using a range of policy rules that are widely employed in studies of monetary economics.

WP 25-20 – We propose a model of the international monetary system. Our model allows us to study how macroeconomic fundamentals and government policies can lead to the emergence of a dominant currency.