Victor, Olivo (2011): The role of money in economies with monetary policy regimes that ignore monetary aggregates.
Download (1263Kb) | Preview
This paper discusses the important issue of price level determinacy from a theoretical and empirical perspective. The theoretical section relies basically on a dynamic aggregate demand aggregate supply (AD-AS) model. In the empirical section, we try to assess the relative importance of money against interest rate in explaining the evolution of the price level in six countries: Australia, Canada, Chile, South Korea, New Zealand and the United States
|Item Type:||MPRA Paper|
|Original Title:||The role of money in economies with monetary policy regimes that ignore monetary aggregates|
|English Title:||The Role of Money in Economies with Monetary Policy Regimes that Ignore Monetary Aggregates|
|Keywords:||Money, monetary aggregates, interest rate, monetary policy, price level|
|Subjects:||E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level; Inflation; Deflation
E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy
|Depositing User:||Victor Olivo|
|Date Deposited:||13. Sep 2012 05:59|
|Last Modified:||12. Feb 2013 15:47|
Buiter, Willem H. (1999). The Fallacy of the Fiscal Theory of the Price Level. NBER Working Paper Series w7302.
Buiter, Willem H. (2004). A Small Corner of Intertemporal Public Finance – New Developments in Monetary Economics: 2 Ghosts, 2 Eccentricities, A Fallacy, A Mirage, and A Mythos. NBER Working Paper Series w10524.
Issing, Otmar. (2011). Lessons for Monetary Policy: What Should the Consensus Be? IMF Working Paper WP/11/97
Olivo, Víctor. (2001). Fiscal Dominance in Semi-Open Economies with Managed Exchange Rate Regimes: A Theoretical and Empirical Analysis. PhD Dissertation. University of Connecticut
Olivo, Víctor. (2011). Tópicos Avanzados de Teoría y Política Monetaria. Editorial Arte Profesional.
Sargent, Thomas and Neil Wallace. (1981). Rational Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule. In Robert E. Lucas Jr. and Thomas J. Sargent, Rational Expectations and Econometric Practice. Volume 1. The University of Minnesota Press.
Walsh, Carl. (2010). Monetary Theory and Policy, Second Edition. The MIT Press.
Woodford, Michael. (2003). Interest & Prices. Foundations of a Theory of Monetary Policy. Princeton University Press.
Woodford, Michael. (2007). How Important is Money in the Conduct of Monetary Policy. NBER Working Paper Series. W13325.