We estimate monetary policy reaction functions for France, Germany, Italy, the United Kingdom, and the United States using a Markov-switching model that incorporates switching in the monetary policy regime as well as an independent switching process for shifts in the state of the economy....

Die Vereinbarkeit von negativem Geldmengenwachstum mit Hyperinflation In seinem Aufsatz kommt Gersbach (1993) zu dem Ergebnis, daß Hyperinflation mit negativem Geldmengenwachstum vereinbar sei. Im Gegensatz hierzu wird in unserem Kommentar gezeigt, daß nur akzelerierendes Geldmengenwachstum zu...

Though most economists agree that monetary policy has significant effects on the real sector in the short run, interest-rate elasticities of macroeconomic aggregates in general are found to be low. Recently, the credit channel has been discussed as an additional channel through which monetary...

Keynesian theory suggests that a reduction in government expenditure has a negative effect on private demand and therefore on output. Contrary, neoclassical theory argues that reduced public expenditure makes room for an expansion of the private sector and thus has a stimulating effect on the...