The paper derives the monetary policy reaction function implied by money growth targeting. It consists of an interest … rate response to deviations of the inflation rate from target, to the change in the output gap, to money demand shocks and …

inflation, output and money growth. The analysis is based on a small empirical model of the hybrid New Keynesian type which has … rate rules which include a response to money growth outperform both Taylor-type rules and speed limit policies once real …-time output gap uncertainty is accounted for. One reason is that targeting money growth introduces history dependence into the …

inflation gap, money growth and the risk spread, the response to asset price inflation becomes more pronounced during the crisis …

in order to account for variations within these variables over time. We argue that measures of money and credit growth … the Fed is concerned, the impact of consumer price inflation, and money and credit growth turns negative during the crisis …