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Banking and Interest Rates in Monetary Policy Analysis : A Quantitative Exploration

Goodfriend, Marvin - 2007

The paper reconsiders the role of money and banking in monetary policy analysis by including a banking sector and money in an optimizing model otherwise of a standard type. The model is implemented quantitatively, with a calibration based on U.S. data. It is reasonably successful in providing an...

Persistent link: https://www.econbiz.de/10012465446

Monetary and Fiscal Theories of the Price Level : The Irreconcilable Differences

McCallum, Bennett T. - 2006

The fiscal theory of the price level (FTPL) has attracted much attention but disagreement remains concerning its defining characteristics. Some writers have emphasized implications regarding interest-rate pegging and determinacy of RE solutions, whereas others have stressed its capacity to...

Persistent link: https://www.econbiz.de/10012466580

The Own-Price of Money and a New Channel of Monetary Transmission

Belongia, Michael T. - 2002

Traditionally, the effects of monetary policy actions on output are thought to be transmitted via monetary or credit channels. Real business cycle theory, by contrast, highlights the role of real price changes as a source of revisions in spending and production decisions. Motivated by the desire...

Persistent link: https://www.econbiz.de/10012469365

Should Monetary Policy Respond Strongly to Output Gaps?

McCallum, Bennett T. - 2001

Much recent monetary policy analysis has featured stochastic simulations with small structural macroeconomic models that include: a spending vs. saving ( IS') sector; a price-adjustment sector; and an interest rate policy rule. The first two are frequently specified so as to reflect optimizing...

Persistent link: https://www.econbiz.de/10012470498

Monetary Policy for an Open Economy : An Alternative Framework with Optimizing Agents and Sticky Prices

McCallum, Bennett T. - 2001

The new open-economy macroeconomics' seeks to provide an improved basis for monetary and exchange-rate policy through … the construction of open-economy models that feature rational expectations, optimizing agents, and slowly adjusting prices … consumer goods but rather as raw-material inputs to the home economy's productive process. This treatment leads to a clean and …

Persistent link: https://www.econbiz.de/10012470551

Monetary Policy Analysis in Models Without Money

McCallum, Bennett T. - 2001

The following arguments are developed: (i) models without monetary aggregates do not imply that inflation is a non-monetary phenomenon and are not necessarily non-monetary models; (ii) theoretical considerations suggest that such models are misspecified, but the quantitative significance of this...

Persistent link: https://www.econbiz.de/10012470552

The Present and Future of Monetary Policy Rules

McCallum, Bennett T. - 2000

To consider the prospects, looking 20-30 years into the future, for monetary policymaking in accordance with policy rules, one must evaluate their present importance. That requires some definition of what constitutes rule-based monetary policy in practice, since no actual central bank will ever...

Persistent link: https://www.econbiz.de/10012470821

Timeless Perspectives vs. Discretionary Monetary Policy In Forward-Looking Models

McCallum, Bennett T. - 2000

This paper reviews the distinction between the timeless perspective and discretionary modes of monetary policymaking, the former representing rule-based policy as recently formalized by Woodford (1999b). In models with forward-looking expectations, this distinction is greater than in the models...

Persistent link: https://www.econbiz.de/10012470822

An Optimizing IS-LM Framework with Endogenous Investment

Casares, Miguel - 2000

Dynamic optimizing models with an IS-LM-type structure and slow price adjustments have been used for much recent monetary policy analysis, but usually with capital and investment treated as exogenous a significant restriction. This paper demonstrates that investment decisions can be endogenized...

Persistent link: https://www.econbiz.de/10012470829

Alternative Monetary Policy Rules : A Comparison with Historical Settings for the United States, the United Kingdom, and Japan

McCallum, Bennett T. - 2000

This paper conducts counterfactual historical analysis of several monetary policy rules by contrasting actual settings of instrument variables with values that would have been specified by the rules in response to prevailing conditions. Of particular interest is whether major policy mistakes,...

Persistent link: https://www.econbiz.de/10012471025