Shadow Open Market Committee (SOMC)
What it is:
How it works/Example:
Founded by two economists from Carnegie Mellon University and the University of Rochester, the Shadow Open Market Committee (SOMC) analyzes and critiques the monetary policy and decisions of the Federal Open Market Committee (FOMC). Comprising members from academic as well as private sector backgrounds, the SOMC meets twice each year to review actions taken by the FOMC and to analyze the effectiveness of those actions. Additionally, the SOMC uses its analyses as a basis for issuing monetary policy recommendations to the FOMC.
Why it matters:
The SOMC provides a well-informed third-party perspective on FOMC decisions as far as their overall economic effect. However, history has shown that the actions of the FOMC are not closely tied to the recommendations of the SOMC.