Inside Money And Monetary Neutrality

DOWNLOAD

Download Inside Money And Monetary Neutrality PDF/ePub or read online books in Mobi eBooks. Click Download or Read Online button to get Inside Money And Monetary Neutrality book now. This website allows unlimited access to, at the time of writing, more than 1.5 million titles, including hundreds of thousands of titles in various foreign languages. If the content not found or just blank you must refresh this page

Inside Money And Monetary Neutrality

DOWNLOAD
Author : Peter R. Hartley
language : en
Publisher:
Release Date : 1986

Inside Money And Monetary Neutrality written by Peter R. Hartley and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1986 with Money categories.

This paper examines the interaction between the financial and real sectors of the economy within the framework of a stochastic, rational expectation model that distinguishes between inside and outside money. The model also can be used to study the impact of variations in the degree of intermediation, measured by the elasticity of bank deposit supply. In contrast to earlier work which emphasized confusion between monetary and real shocks, we focus on the role played by confusion between inside and outside money and temporary and permanent base money disturbances. Financial sector disturbances, as well as temporary shocks tothe monetary base, are shown to have real effects even when private agents have complete information. When contemporaneous information on economic disturbances is incomplete, permanent shocks to the monetary base also have real effects. If our model is correct, it is invalid to reject equilibrium models of the business cycle on the grounds that anticipated money affects output. We argue that this result is robust in the sense that many "reasonable" models which incorporate inside money would yield a non-neutrality of portfolio and temporary base money supply shocks

Inside Money And Monetary Neutrality

DOWNLOAD
Author :
language : en
Publisher:
Release Date : 1986

Inside Money And Monetary Neutrality written by and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1986 with categories.

On Long Run Monetary Neutrality In Japan

DOWNLOAD
Author : Hiroyuki Ōi
language : en
Publisher:
Release Date : 2004

On Long Run Monetary Neutrality In Japan written by Hiroyuki Ōi and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2004 with Demand for money categories.

This paper comprehensively investigates long-run monetary neutrality in Japan , with due consideration to the order of integration of the money stock and real output, mainly using long term time-series data retroactively available from the Meiji Era (1868-1912). The empirical results indicate little evidence against the long-run neutrality of money (especially defined as M2) with respect to real GNP. In addition, such findings are robust to a wide range of identifying assumptions.

Monetary Bands And Monetary Neutrality

DOWNLOAD
Author : Sangmoon Hahm
language : en
Publisher:
Release Date : 1999

Monetary Bands And Monetary Neutrality written by Sangmoon Hahm and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1999 with Monetary policy categories.

The Implications Of An Endogenous Money Supply For Monetary Neutrality

DOWNLOAD
Author : Robert Graham King
language : en
Publisher:
Release Date : 1983

The Implications Of An Endogenous Money Supply For Monetary Neutrality written by Robert Graham King and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1983 with Business cycles categories.

This paper examines the implications of an endogenous money supply for the perceived(by econometricians) and actual nonneutrality of money in rational expectations models of the class put forward by Lucas (1972, 1973) and Barro(1976, 1980) that stress incomplete information. First, if there is contemporaneous policy response (e.g., to interest rates), then a simultaneous equations bias produces inconsistency in tests that use contemporaneous monetary statistics such as those proposed by King (1981) and Boschen-Grossman (1983).Thus, an econometrician might erroneously conclude that money is nonneutral ina fully classical model. Second, if money acts as a 'signal' about economic conditions then autonomous (policy induced) changes in the money stock can have real effects. In contrast to the nonneutrality of money in the Lucas-Barro analysis, which arises due to incomplete information about monetary aggregates, this nonneutrality requires that monetary information be utilized by economic agents

Long Run Monetary Neutrality And Contemporary Policy Analysis

DOWNLOAD
Author : Bennett T. McCallum
language : en
Publisher:
Release Date : 2004

Long Run Monetary Neutrality And Contemporary Policy Analysis written by Bennett T. McCallum and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2004 with Economic development categories.

Arguments are developed concerning a number of topics including long-run monetary neutrality, superneutrality, the natural-rate hypothesis, the quantity theory of money, the equation of exchange, the Fisher equation, and purchasing power parity. These are basic, fundamental topics that all students of monetary economics refer to frequently, but there is evidently considerable disagreement concerning their exact nature. Some of the disagreement has likely been generated by the recent practice by monetary economists of conducting monetary policy analysis in models that include no mention of any monetary variable such as M1 or the monetary base-thereby reflecting the actual policy practice of most central banks. It is argued that these models are consistent in most important ways with highly traditional monetary analysis. More generally, relationships among the various topics are developed and the validity of empirical tests (e.g., cointegration tests) relating to several of the topics are reconsidered.

Money Illusion And Strategic Complementarity As Causes Of Monetary Non Neutrality

DOWNLOAD
Author : Jean-Robert Tyran
language : en
Publisher: Springer Science & Business Media
Release Date : 2012-12-06

Money Illusion And Strategic Complementarity As Causes Of Monetary Non Neutrality written by Jean-Robert Tyran and has been published by Springer Science & Business Media this book supported file pdf, txt, epub, kindle and other format this book has been release on 2012-12-06 with Business & Economics categories.

In principle, money illusion could explain the inertial adjustment of prices after changes of monetary policy. Hence, money illusion could provide an explanation of monetary non-neutrality. However, this explanation has been thoroughly discredited in modern economics. As a consequence, economists have ever since the 1970s searched for alternative explanations for nominal rigidity. These explanations are all based on the assumption of fully rational economic agents, holding rational expectations. This book argues that money illusion has been prematurely dismissed as an explanation of monetary non-neutrality. Methods of experimental economics are used to investigate the real aggregate effects of money illusion. It is shown that money illusion in fact causes (short-run) real income effects if strategic complementarity prevails. Strategic complementarity is an important characteristic of naturally occurring macroeconomies and is a recurrent theme in most models explaining nominal rigidity.

Using Equity Markets To Teach Long Run Monetary Neutrality

DOWNLOAD
Author : Stephen M. Miller
language : en
Publisher:
Release Date : 2010

Using Equity Markets To Teach Long Run Monetary Neutrality written by Stephen M. Miller and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2010 with categories.

This paper outlines a process for teaching long-run neutrality of money, drawing an analogy between equity markets and the money market. The key points in the discussion include the following: (1) What is the price of money? (2) Why does the long-run demand for money trace out a rectangular hyperbola? (3) Why does the slow adjustment of goods and service prices to changes in the supply of money lead to a different short-run demand for money? and (4) Why does a successful currency reform generate similar short-run movements in the price of money as movements in equity share prices after a change in the supply of shares? I have used this approach successfully for over 30 years at all levels, wherever I need to discuss the money market in a macroeconomic model.

Medium Term Money Neutrality And The Effective Lower Bound

DOWNLOAD
Author : Gauti B. Eggertsson
language : en
Publisher:
Release Date : 2020

Medium Term Money Neutrality And The Effective Lower Bound written by Gauti B. Eggertsson and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2020 with categories.

Conventional wisdom suggests that medium-term money neutrality imposes strong limitations on the effects of monetary policy. The point of this paper is that models with medium- and long-term money neutrality are prone to generate non-existence of equilibria at the effective lower bound (ELB) on interest rates. Non-existence is suggestive of sharp output contractions -- so-called contractionary black holes -- at the ELB. Paradoxically, the case for expansionary monetary policy at the ELB is even stronger in models that feature near money neutrality. The results highlight the benefits of a monetary policy regime in which the central bank temporarily overshoots its inflation target once confronted by the ELB.

Money And The Economy

DOWNLOAD
Author : Apostolos Serletis
language : en
Publisher: World Scientific
Release Date : 2006-08-08

Money And The Economy written by Apostolos Serletis and has been published by World Scientific this book supported file pdf, txt, epub, kindle and other format this book has been release on 2006-08-08 with Business & Economics categories.

This book provides a comprehensive and systematic introduction to the problem of the definition of money and investigates the gains that can be achieved by a rigorous use of microeconomic- and aggregation-theoretic foundations in the construction of monetary aggregates. It provides readers with key aspects of monetary economics and macroeconomics, including monetary aggregation, demand systems, flexible functional forms, long-run monetary neutrality, the welfare cost of inflation, and nonlinear chaotic dynamics.This book offers the following conclusions: the simple-sum approach to monetary aggregation and log-linear money demand functions, currently used by central banks, are inappropriate for monetary policy purposes; the choice of monetary aggregation procedure is crucial in evaluating the welfare cost of inflation; the inter-related problems of monetary aggregation and money demand will be successfully investigated in the context of flexible functional forms that satisfy theoretical regularity globally, pointing the way forward to useful and productive research.