When considering these shocks, it is important to distinguish how monetary and non-monetary policies influence the level of output and employment. In the model I employ, the Federal Reserve controls the real interest rate; lowering the real interest rate increases the demand for goods and services, and thereby influences national output and employment.
Joachim Wuermeling: Banking regulation and the benefits of international cooperation - Basel III and beyond Speech by Prof Joachim Wuermeling, Member of the Executive Board of the Deutsche Bundesbank, at the Konrad Adenauer Foundation, Washington DC, 7 February 2019. * * * Ladies and gentlemen, Welcome to the “Gold Room” of the Konrad Adenauer Foundation.