There is substantial research effort devoted to identifying a sufficient statistic for monetary policy. The purpose of this paper is to broaden the scope of the on-going investigation along three dimensions. First, we follow up the Rudebusch-Svensson claim of parameter instability in the output...

In this paper, we explore the connection between optimal monetary policy and heterogeneity among agents. We study a standard monetary economy with two types of agents in which the stationary distribution of money holdings is non-degenerate. Sans type-specific fiscal policy, we show that the...

Recent papers suggest that when intermediation is analyzed seriously, the Friedman rule does not maximize social welfare in overlapping generations model in which money is valued because of spatial separation and limited communication. These papers emphasize a trade-off between productive...

In 1988 The European Council from Hanover has founded a committee leaded by Jacques Delors, president of The European Committee about that time, with the task of formulating proposals concerning legislative and economic arrangements necessary to finish The Economic and Monetary Union. Delors...

Leão (2005) has recently proposed a new explanation for the short run variability of the velocity of money based on the changes in the composition of the expenditure that occur along the business cycle. This paper presents further empirical evidence in favour of Leão’s Expenditure...

In the long history of rising and persistent unemployment in Europe almost all institutions - employment protection legislation, unions, wages, wage structure, unemployment insurance, etc. - have been alleged and found guilty to have caused this tragic development at some point in time. Later,...

In this paper we examine the influence of monetary policy on real activity in France and attempt to isolate the different monetary transmission channels. We use a multivariate model including : output, prices, a monetary aggregate, a short-term interest rate and a short -term bank loan rate.