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The punch bowl, the party, the exit
Macroblog (Federal Reserve Bank of Atlanta), The punch bowl, the party, the exit by David Altig
AUTHOR(S): Altig, David, 1956-
DATE: February 13, 2010
PART OF: Macroblog (Federal Reserve Bank of Atlanta)
fraser.stlouisfed.org/.../macroblog-federal-reserve-bank-atlanta-8601/punch-bowl-party-exit-666676

Classroom Lesson: Removing the "Punch Bowl" : Inflation and the Federal Reserve’s Use of Contractionary Monetary Policy
This lesson focuses on contractionary monetary policy by analyzing a 1955 primary source document of a speech Federal Reserve Chair William McChesney Martin Jr. gave. In his speech, Martin made the famous analogy that in times of economic expansion the Fed should "remove the punch bowl" before the party gets out of hand. Students will develop critical thinking skills through this primary document analysis and develop data literacy skills through FRED® graph analysis.
GRADE LEVEL: 10-12
PART OF: Teaching and Learning With FRASER®
fraser.stlouisfed.org/title/classroom-lesson-removing-punch-bowl-6828

Classroom Lesson: Removing the "Punch Bowl" : Inflation and the Federal Reserve’s Use of Contractionary Monetary Policy
This lesson focuses on contractionary monetary policy by analyzing a 1955 primary source document of a speech Federal Reserve Chair William McChesney Martin Jr. gave. In his speech, Martin made the famous analogy that in times of economic expansion the Fed should “remove the punch bowl” before the party gets out of hand. Students will develop critical thinking skills through this primary document analysis and develop data literacy skills through FRED® graph analysis.
GRADE LEVEL: 10-12
PART OF: Teaching and Learning With FRASER®
fraser.stlouisfed.org/title/classroom-lesson-removing-punch-bowl-6828

Uncurrent Events: Martin’s Punch Bowl Metaphor | Inside FRASER Blog | Discover Economic History | St. Louis Fed
Perhaps the most frequent metaphor for the Federal Reserve’s role in managing the economy involves a punch bowl and a party. Although it is often paraphrased, the actual quote is “The Federal Reserve…is in the position of the chaperone who has ordered the punch bowl removed just when the party was really warming up.” In October 1955, Fed Chair William McChesney Martin, Jr. delivered a speech to the New York Group of the Investment Bankers Association of America. In that speech, Martin de
fraser.stlouisfed.org/blog/2016/03/martins-punch-bowl-metaphor

Address before the New York Group of the Investment Bankers Association of America
William McChesney Martin's Punch Bowl (Punchbowl) speech describes the Federal Reserve as a 'chaperone who has ordered the punch bowl removed just when the party was really warming up.' Earlier in the speech, Martin explains this: 'In the field of monetary and credit policy, precautionary action to prevent inflationary excesses is bound to have some onerous effects... Those who have the task of making such policy don't expect you to applaud.' In short, the punch bowl metaphor describes the Fed's job as tightening monetary policy before inflation gets out of control. Later Fed Chairs and other economic policymakers have used the 'punch bowl' metaphor in their descriptions of Fed's monetary policy actions.
AUTHOR(S): Martin, William McChesney; Board of Governors of the Federal Reserve System (U.S.), 1935-
DATE: October 19, 1955
PART OF: Statements and Speeches of William McChesney Martin, Jr.
fraser.stlouisfed.org/.../address-new-york-group-investment-bankers-association-america-7800

Supporting Price Stability
Macroblog (Federal Reserve Bank of Atlanta), Supporting Price Stability by David Altig
AUTHOR(S): Altig, David, 1956-
DATE: October 9, 2012
PART OF: Macroblog (Federal Reserve Bank of Atlanta)
fraser.stlouisfed.org/.../supporting-price-stability-660648

Remarks on the Resignation of H. Robert Heller
Statements and Speeches of Robert P. Forrestal, Remarks on the Resignation of H. Robert Heller by Robert P. Forrestal, Federal Reserve Bank of Atlanta
AUTHOR(S): Forrestal, Robert P.; Federal Reserve Bank of Atlanta
DATE: July 5, 1989
PART OF: Statements and Speeches of Robert P. Forrestal
fraser.stlouisfed.org/.../remarks-resignation-h-robert-heller-521192

When independence begets accountability
Macroblog (Federal Reserve Bank of Atlanta), When independence begets accountability by David Altig
AUTHOR(S): Altig, David, 1956-
DATE: January 11, 2010
PART OF: Macroblog (Federal Reserve Bank of Atlanta)
fraser.stlouisfed.org/.../independence-begets-accountability-666682

Why Haven't Long-Term Interest Rates Fallen?, January 1, 2002
In 2001, the Federal Reserve lowered the federal funds rate target more than it had in over 25 years, but long term interest rates didn't budge. Has monetary policy become ineffective? Just the opposite, the authors argue. The stability of long-term rates shows that people don't expect inflation to rise. That confidence, especially in light of the dramatic shocks the economy experienced, attests to the success of the central bank's policies.
AUTHOR(S): Altig, David, 1956-; Nosal, Ed
DATE: January 1, 2002
PART OF: Economic Commentary (Federal Reserve Bank of Cleveland)
fraser.stlouisfed.org/.../havent-long-term-interest-rates-fallen-627771

Forward Guidance : Presented to the Stanford Institute for Economic Policy Research's (SIEPR) Annual Meeting, Stanford, CA
Statements and Speeches of Charles I. Plosser, Forward Guidance : Presented to the Stanford Institute for Economic Policy Research's (SIEPR) Annual Meeting, Stanford, CA by Charles I. Plosser
AUTHOR(S): Plosser, Charles I.
DATE: February 12, 2013
PART OF: Statements and Speeches of Charles I. Plosser
fraser.stlouisfed.org/.../title/statements-speeches-charles-i-plosser-6101/forward-guidance-586723

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