Serletis, Apostolos; Istiak, Khandokar; Gogas, Periklis - In: Open Economies Review 24 (2013) 1, pp. 51-78
The current mainstream approach to monetary policy is based on the New Keynesian model and is expressed in terms of a short-term nominal interest, such as the federal funds rate in the United States. It ignores the role of leverage and also downplays the role of money in basic monetary theory...