asset (money). We show that, even in the absence of asymmetric information or an agency problem, the private provision of … this. This distortion is present even if we introduce lending and government money. To eliminate the inefficiency the …

driven by the crisis. Our general point is that money matters in financial markets. Different financial assets have different …

The European Central Bank has assigned a special role to money in its two pillar strategy and has received much … criticism for this decision. The case against including money in the central bank's interest rate rule is based on a standard … decades. In this paper, we develop a justification for including money in the interest rate rule by allowing for imperfect …

modified to account for observed money growth and inflation trends, and that monetary trends may serve as a useful cross … persistent errors in monetary policy and sustained trends in money growth and inflation. If interest rate prescriptions derived … from Keynesian-style models are augmented with a cross-check against money-based estimates of trend inflation, inflation …

justified empirically. Both the relation between money and inflation, and between money and aggregate demand, are considered … by money growth. This relationship arises from a conventional aggregate-demand channel; an emphasis on the link between … monetary aggregates and inflation in no way requires a direct channel connecting money and inflation. The relevance of money …

money and inflation. When analysing the full sample of countries we find a strong positive relation between the long …-run inflation and money growth rate. The relation is not, however, proportional. The strong link between inflation and money growth … inflation and money growth for low inflation countries (on average less than 10% per annum over the last 30 years) is weak. We …

criticized for failing to explain common trends in money growth and inflation, and that therefore money should be used as a cross …

We study the contribution of money to business cycle fluctuations in the US, the UK, Japan, and the Euro area using a … contribution changes over time. Models giving money no role provide a distorted representation of the sources of cyclical …