Has anyone looked at this? Jaimie uses a VAR model to show that the Fed targets low unemployment rather than inflation and that it acts politically to promote Republicans and presidential elections.
Levy Working Paper No. 511 The Fed's Real Reaction Function Monetary Policy, Inflation, Unemployment, Inequality-and Presidential Politics* James K. Galbraith Olivier Giovannoni Ann J. Russo August 2007 Michael Perelman Economics Department California State University michael at ecst.csuchico.edu Chico, CA 95929 530-898-5321 fax 530-898-5901 www.michaelperelman.wordpress.com
