The target problem considers the central bank's use of optimal tools and targets for purposes of stabilization and welfare optimization. In this study, this question is answered anew in a microfounded approach. By adding imperfect information to the model of [Berentsen and Waller, 2011], a...

This paper analyzes the effectiveness of monetary policy on money and credit in Pakistan by using the data rich environment. FAVAR model is used which consists of 115 macroeconomic variable for the period 1992:01 to 2010:12. Results depict that after a positive shock in interest rate (discount...

A rich recent literature reinvestigates the nature of money, but little attention has been paid to the ramifications of the ways in which we theorize money for the theory of international trade. This paper examines the logical relationship between the neutrality of money and self-balancing trade...