Gavin, William T.; Keen, Benjamin D.; Pakko, Michael R. - Federal Reserve Bank of St. Louis - 2005
of inflation relative to money growth depends on whether the central bank follows a money growth rule or an interest rate …This paper revisits the issue of money growth versus the interest rate as the instrument of monetary policy. Using a … dynamic stochastic general equilibrium framework, we examine the effects of alternative monetary policy rules on inflation …