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Money and the transmission mechanism in the optimizing IS-LM specification

Nelson, Edward - Federal Reserve Bank of St. Louis - 2003

recognition to the intertemporal nature of households' saving decisions. Like traditional IS-LM, however, the optimizing version … tends to understate the value of money as an indicator for monetary policy. …

Persistent link: https://www.econbiz.de/10005707651

International evidence on the stability of the optimizing IS equation

Kara, Amit (contributor); Nelson, Edward (contributor) - 2003 - [Elektronische Ressource], rev

Persistent link: https://www.econbiz.de/10001982872

Tobin's imperfect asset substitution in optimizing general equilibrium

Andres, Javier; López-Salido, J. David; Nelson, Edward - Federal Reserve Bank of St. Louis - 2004

In this paper, we present a dynamic optimizing model that allows explicitly for imperfect substitutability between different financial assets. This is specified in a manner which captures Tobin's (1969) view that an expansion of one asset's supply affects both the yield on that asset and the...

Persistent link: https://www.econbiz.de/10005352930

Why money growth determines inflation in the long run: answering the Woodford critique

Nelson, Edward - Federal Reserve Bank of St. Louis - 2008

determined by steady-state money growth. Woodford instead argues that the intercept term in the monetary authority's interest …, according to which it is appropriate to regard steady-state inflation as determined by steady-state money growth. The argument … the money growth rate. …

Persistent link: https://www.econbiz.de/10005352999

International evidence on the stability of the optimizing IS equation

Kara, Amit; Nelson, Edward - Federal Reserve Bank of St. Louis - 2004

In this paper we provide international evidence on the issue of whether the optimizing IS equation is more stable than a backward-looking alternative. The international evidence consist of estimates of IS equations on quarterly data for the UK and Australia, both for the full sample of the last...

Persistent link: https://www.econbiz.de/10005707758

Macroeconometric equivalence, microeconomic dissonance, and the design of monetary policy

Levin, Andrew T.; López-Salido, J. David; Nelson, Edward; … - Federal Reserve Bank of St. Louis - 2008

Many recent studies in macroeconomics have focused on the estimation of DSGE models using a system of loglinear approximations to the models' nonlinear equilibrium conditions. The term macroeconometric equivalence encapsulates the idea that estimates using aggregate data based on first-order...

Persistent link: https://www.econbiz.de/10005490955

The U.K.'s rocky road to stability

Batini, Nicoletta (contributor); Nelson, Edward (contributor) - 2005

"This paper provides an overview, using extensive documentary material, of developments in U.K. macroeconomic policy in the last half-century. Rather than focusing on well-known recent changes in policy arrangements (such as the introduction of inflation targeting in 1992 or central bank...

Persistent link: https://www.econbiz.de/10003053139

Monetary and fiscal theories of the price level: the irreconcilable differences

McCallum, Bennett T.; Nelson, Edward - Federal Reserve Bank of St. Louis - 2006

bonds and differ drastically from those of money supplies. We argue that the FTPL attained prominence precisely because it …

Persistent link: https://www.econbiz.de/10005360634

The macroeconomics of social pacts

Acocella, Nicola; Bartolomeo, Giovanni Di; Tirelli, Patrizio - EconWPA - 2004

In this paper we analyze macroeconomic interactions among trade unions, the central bank and the fiscal policymaker. We explicitly model trade unionsconcern for public expenditure, paving the way for an analysis of the potential gains from cooperation between the fiscal policymaker and the trade...

Persistent link: https://www.econbiz.de/10005125759

Money and the natural rate of interest: structural estimates for the United States and the Euro area

Andrés, Javier; López-Salido, J. David; Nelson, Edward - Federal Reserve Bank of St. Louis - 2007

We examine the role of money, allowing for three competing environments: the New Keynesian model with separable utility … and static money demand; a non-separable utility variant with habit formation; and a version with adjustment costs for … holding real balances. The last two variants imply forward-looking behavior of real money balances, as it is optimal for …

Persistent link: https://www.econbiz.de/10005352963