We augment a standard monetary DSGE model to include a banking sector and financial markets. We fit the model to Euro Area and US data. We find that agency problems in financial contracts, liquidity constraints facing banks and shocks that alter the perception of market risk and hit financial...

This paper tries to answer the long-standing question of whether money causes output. Instead of focusing on domestic monetary policy and output, we analyze U.S. monetary policy and its possible effects on real output in China. Our results indicate that the main monetary instrument in the U.S.,...

This paper brings together, using extensive archival material from several countries, scattered information about Milton Friedman's views and predictions regarding U.S. monetary policy developments after 1960 (i.e., the period beyond that covered by his and Anna Schwartz's Monetary History of...

In this paper, we examine the effectiveness of monetary policies in selected countries of the Euro area (France, Germany, and Italy), the United States and the United Kingdom for the period from 1990 to 2013. We additionally focus on the 2007 financial crisis where the efficacy of both...

This paper inspects the types and the sizes of the unconventional interventions of monetary authorities in the UK, the US, and the EU after the collapse of Lehman Brothers in 2008. It also describes the transmission channels through which the impact of the unconventional monetary policies is...

The M2 monetary aggregate is monitored by the Federal Reserve, using a broad brush theoretical analysis and an informal empirical analysis. This paper illustrates empirical identification of an eleven-variable system, in which M2 and the factors that the Fed regards as causes and effects are...

The rise of inflation in 2021 and 2022 surprised many macroeconomists who ignored the earlier surge in money growth because past instability in the demand for simple-sum monetary aggregates had made these aggregates unreliable indicators. We find that the demand for more theoretically-based...

The following analysis presents conditions for characterizing unsustainable public borrowing. These conditions describe a “critical level” of public debt beyond which increases in taxes (current or future) are required to meet debt service obligations. The discussion is written for a general...

This paper tries to answer the long-standing question of whether money causes output. Instead of focusing on domestic monetary policy and output, we analyze U.S. monetary policy and its possible effects on real output in China. Our results indicate that the main monetary instrument in the U.S.,...