In an earlier article (Journal of Macroeconomics, 1997) we presented estimates of Federal Reserve reaction functions including variables representing economic and political influences. Our goal was to examine the relative importance of political versus economic influences in determining Federal...

This study considers the potential of a variable investment tax credit to relieve the pressure of a contracyclical monetary policy on the housing and State and local government sectors.

When the Lucas paradigm is generalized to include real effects, the effects of real factors and monetary factors on the business cycle are always interrelated. Furthermore, in such models monetary factors can affect the long-run behavior or real output, contrary to the commonly held view that...