This paper offers a general equilibrium model that explains how the observed correlations of money and output fluctuations may come about through endogenously determined fluctuations in the money multiplier. The model is calibrated to meet long-run (including monetary) features of the U.S....

The correlation between changes in the nation's total supply of money and subsequent changes in real output has led some people to infer that policymakers, by changing the money supply, can stimulate or moderate the nation's real output. ; Scott Freeman argues that this conclusion may be...

This paper offers a general equilibrium model that explains how the observed correlations of money and output fluctuations may come about through endogenously determined fluctuations in the money multiplier. The model is calibrated to meet long run features of the U.S. economy (including...