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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
try to assess the relative importance of money against interest rate in explaining the evolution of the price level in six …
Persistent link: https://www.econbiz.de/10011110252
This article discusses a technical aspect of the Federal Reserve's monetary targeting procedure that has come to be known as "base drift." The Fed has been announcing larger ranges for the growth of M1 and other monetary aggregates since 1975. These ranges have been expressed in terms of rates...
Persistent link: https://www.econbiz.de/10004993991
In this paper, I provide a rationale for why money should earn interest; or, what amounts to the same thing, why risk …-free claims to non-interest-bearing money should trade at discount. I argue that interest-bearing money is essential when … individual money balances are private information. The analysis also suggests one reason for why it is sufficient (as well as …
Persistent link: https://www.econbiz.de/10005626863
rate. Money’s role in monetary policy has been tertiary, at best. Indeed, several influential economists have suggested … that money is irrelevant for monetary policy. They suggest that central banks can control inflation by (i) controlling a … rate in order to exert greater control over longer-term rates. I offer an alternative perspective: namely, that money is …
Persistent link: https://www.econbiz.de/10010558739
The present study intends to describe and analyze recent trends in foreign exchange markets, specifically the United States Dollar and the Euro relations as well as the fundamentals behind monetary assets. It brings to light the relationship between economic variables and monetary policy as well...
Persistent link: https://www.econbiz.de/10008565966
monetary exchange and credit. Imperfect memory makes money useful, but it also permits theft to go undetected, and therefore … theft, and the optimal money growth rate tends to rise as the cost of theft falls. …
Persistent link: https://www.econbiz.de/10008636471
In the P-star model the price level is determined by the money stock per unit of potential output and the long …-run equilibrium level of the velocity of money. This article applies this model to Austria. Problems in identifying permanent shocks …-difference version is not so suspect. While evidence is found of a long-run relationship between Austria inflation and money growth, even …
Persistent link: https://www.econbiz.de/10005490892
money growth is essentially zero. We investigate whether standard monetary models driven by monetary shocks are consistent … general equilibrium models with sticky information. ; Earlier title: Inflation and money: a puzzle …
Persistent link: https://www.econbiz.de/10005490909
Persistent link: https://www.econbiz.de/10005387444