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Economic Commentary

Monetary Policy and Inflation: 1993 in Perspective

Although the Federal Reserve did not change its objective for the federal funds rate over the course of the past year, long-term interest rates declined from their 1992 levels. The events of 1993 also point to confidence in the financial markets that the central bank will respond appropriately to any significant acceleration in the price level. This article provides an overview of these issues in the context of the Federal Reserve's continued emphasis on price stability, which may have contributed to the outcome for interest rates in 1993.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Bauer, Gregory, and John B. Carlson. 1994. “Monetary Policy and Inflation: 1993 in Perspective.” Federal Reserve Bank of Cleveland, Economic Commentary 1/1/1994.

This work by Federal Reserve Bank of Cleveland is licensed under Creative Commons Attribution-NonCommercial 4.0 International