TY  - JOUR
AU  - Mankiw,N. Gregory
AU  - Miron,Jeffrey A.
AU  - Weil,David N.
TI  - The Adjustment of Expectations to a Change in Regime:  A Study of the Founding of the Federal Reserve
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2124
PY  - 1987
Y2  - October 1987
UR  - http://www.nber.org/papers/w2124
L1  - http://www.nber.org/papers/w2124.pdf
N1  - Author contact info:
N. Gregory Mankiw
Department of Economics
Littauer 223
Harvard University
Cambridge, MA  02138
Tel: 617/495-4301
Fax: 617/495-7730
E-Mail: ngmankiw@fas.harvard.edu

Jeffrey A. Miron
Department of Economics
Harvard University
Cambridge, MA 02138
Tel: 781/856-0086
Fax: 617/495-8570
E-Mail: miron@fas.harvard.edu

David N. Weil
Department of Economics
Box B
Brown University
Providence, RI 02912
Tel: 401/863-1754
Fax: 401/863-1970
E-Mail: david_weil@brown.edu
AB  - The founding of the Federal Reserve System in 1914 led to a substantial change in the behavior of nominal interest rates. We examine the timing of this change and the speed with which it was effected. We then use data on the term structure of interest rates to determine how expectations responded. Our results indicate that the change in policy regime was rapid and that individuals quickly understood the new environment they were facing.
ER  -