In this article, effects of stock price developments on employment are examined. For this purpose, the reduced-form equation of the Keynes-Weintraub-Davidson model for employment is augmented with stock prices. Estimation of the reduced-form equation, employing cointegration methodology and...

In this paper, the Taylor rule and the Keynesian monetary policy rules recently introduced by Atesoglu are empirically compared for the 1994:2-2007:4 period. The findings reveal that the Atesoglu rule and the inflation-augmented Atesoglu rule are able to provide a better explanation of the...

An inflation-augmented Atesoglu monetary policy rule is introduced. The Atesoglu rule is based on an estimate of the neutral rate of interest of Keynes. Actual Fed monetary policy and policy implied by Atesoglu rules are compared. During the 1994:2-2006:4 period, monetary policy suggested by the...

In this paper, a new monetary policy rule is introduced. The proposed rule is based on Keynes's neutral rate of interest idea, a concept defined in the General Theory. The primary goal of the proposed rule is to ensure that the macroeconomy produces an output equal to its full-employment level....

Effects of defense spending on investment in the United States are examined. Findings reveal that there is a positive cointegration relation between defense spending and investment. Findings do not indicate a tradeoff between defense spending and investment. Nondefense government spending has a...

Empirical relations between the federal funds rate and long-term interest rates are analyzed by employing the vector error correction modeling and cointegration techniques. The findings reveal a cointegration relation and a unidirectional causality from the federal funds rate to the long-term...

Two subperiods, 1987:02-1994:01 and 1994:02-2002:05, are selected for examining the relation between the federal funds rate and the prime rate. Empirical evidence from both sample periods reveals a positive cointegration relation representing a pass-through from the federal funds rate to the...