can be analyzed as a credibility problem if the government has only one policy instrument, money supply carried out by … solve the credibility problem. They involve printing money or nominal debt and either (1) cutting taxes, (2) buying real … these policy instruments. It commits to higher money supply in the future so that the private sector expects inflation …

money, surveying the ongoing theoretical and empirical debate. The key conclusion is that an exclusive focus on non … policy decisions by providing a clearer narrative of the relative role of money in the interaction with other economic and …

Pakistan. A stylized inflation model is specified that includes standard monetary variables (money supply, credit to the … private sector), the exchange rate, as well as the wheat support price as a supply-side factor that has received considerable …. Changes in the wheat support price influence inflation in the short run, but not in the long run. Furthermore, the wheat …

This paper analyzes broad money demand (M2) in Guyana from January 1990 to September 1999; a period marked by deep … based on a long-run cointegrating vector of money demand. The latter establishes that real money demand is determined in the … long run by real income, interest rates, and the exchange rate. The results also show the existence of strong exchange rate …

from 98 countries, we find strong evidence for cointegration between nominal exchange rates and monetary fundamentals. We …

This paper reviews recent advances in the specification and estimation of Bayesian Vector Autoregressive models (BVARs …). After describing the Bayesian principle of estimation, we first present the methodology originally developed by Litterman … issues in forecasting and structural analysis. An application to the estimation of a system of time-varying reaction …

inflows of external income?the sum of remittances, FDI and general government transfers?from major oil-exporting economies … that real output in the long run is shaped by: (i) oil prices through their impact on external income and in turn on … the hypothesis that a large share of Jordan's output volatility can be associated with fluctuations in net income received …

This paper examines empirically U.S. broad money demand emphasizing the role of financial market risk. We find that … money demand rises with the liquidity risk of stock markets or the credit risk of corporate bond markets. After controlling … for the effect of financial market risk, money demand becomes relatively stable over the last 35 years. At the sectoral …

shocks and shocks related to changes in the money supply and price convergence with trading partners, have become more … analysis helps to determine the relative contributions of factors such as increased productivity, scarce money supply, and … negative wealth and balance-sheet effects in the corporate and household sectors arising from asset-price declines over the …