The ECB is the only major central bank that still emphasizes the role of money in monetary policy management. In this paper, we bring some support to this approach. Taking into account Euro area data from the period between 1999 and 2007, we demonstrate that a steady 10 per cent increase in M3...

Le «nouveau keynésianisme» actuel néglige le rôle des aggrégats monétaires dans la détermination de l¿équilibre économique. On peut se poser des questions sur cette vision tant il est difficile d¿admettre que la monnaie serait une variable «passive» du système économique. En...

In the current New Keynesian literature, the role of monetary aggregates is generally neglected. Yet it’s hard to imagine money completely “passive” to the rest of the system. By entering real money balances in a non-separable utility function, we introduce an explicit role for money via...