We study the contribution of money to business cycle fluctuations in the US, the UK, Japan, and the Euro area using a … contribution changes over time. Models giving money no role provide a distorted representation of the sources of cyclical …

The emerging consensus in monetary policy and business cycle analysis is that money aggregates are not useful as an … intermediate target for monetary policy or as an information variable. The uselessness of money as an intermediate target is driven … by empirical research that suggests that money demand is unstable. In addition, the informational quality of money has …

Response Functions and propose a variance decomposition (for the monetary BC Models). We find that even though money is not … money (M1) and inflation are not well reproduced. …