criticized for failing to explain common trends in money growth and inflation, and that therefore money should be used as a cross …

This paper provides an overview of the role of money in modern macro models. In particular, we are focussing on New … Keynesian and New Monetarist models to investigate their main findings and most significant shortcomings in considering money … recent New Keynesian literature, we argue that keeping an eye on money is important to monetary policy decision-makers in …

monetary dominance was the monetarist reinterpretation of the Great Depression. In the 1990s orthodoxy replaced money supply … targeting with inflation targeting while preserving monetarist results. In this monetarism without money, fiscal policy was not …

We analyze money financing of fiscal transfers (helicopter money) in two simple New Keynesian models: a "textbook …" model in which all money is non-interest-bearing (e.g., all money is currency), and a more realistic model with interest …-bearing reserves. In the textbook model with only non-interest-bearing money, we find the following: A money-financed fiscal expansion …

financial frictions. The central bank influences the store-of-value function of money through a conventional Taylor rule while … it affects the means-of-exchange function of money through CBDC operations. Peak responses to monetary policy shocks … contributes to stabilising the liquidity premium, thereby affecting bank funding conditions and the opportunity costs of money …

financial frictions. The central bank influences the store-of-value function of money through a conventional Taylor rule while … it affects the means-of-exchange function of money through CBDC operations. Peak responses to monetary policy shocks … contributes to stabilising the liquidity premium, thereby affecting bank funding conditions and the opportunity costs of money …

of conventional forms of money and CBDC. We analyze the impact of four different CBDC regimes: (i) no CBDC, (ii) each …

This paper integrates a money and credit market into a static approximation of the baseline New Keynesian model based … on a money-and-credit-in-the-utility approach, in which real balances and borrowing contribute to the household’s utility …

, real broad money, which is predetermined, affects aggregate demand and has a stabilizing impact. Monetary policy can ensure … equilibrium uniqueness if the central bank reacts at least slightly on the real broad money gap. Moreover, if the central bank … aims at minimizing a standard loss function, real broad money enters the interest rate reaction function. Thus, money …