This paper explores the behavior of money demand by explicitly accounting for the money supply endogeneity arising from endogenous monetary policy and financial innovations. Our theoretical analysis indicates that money supply factors matter in the money demand function when the money supply...

This paper analyzes how noisy or imprecise announcements might partially remove the inefficiencies resulting from the credibility problem in monetary policy when the presence of non-verifiable private information adds another dimension to that problem. The analysis finds that imprecise or noisy...