In this paper it is shown that money can matter for macroeconomic stability under interest rate policy, if transactions … the marginal utility of consumption to depend on the (predetermined) stock of money held at the beginning of the period … is alternatively assumed that end-of-period money provides transaction services, money can be neglected for interest rate …

In this paper, we analyze the relation between interest rate targets and money supply in a (bubble-free) rational … expectations equilibrium of a standard cash-in-advance model. We examine lump-sum injections of money aimed to implement interest … general corresponds to money growth rates rising with inflation. When prices are not completely flexible, this implies that a …

In this paper, we analyze the relation between interest rate targets and money supply in a (bubble-free) rational … expectations equilibrium of a standard cash-in-advance model. We examine lump-sum injections of money aimed to implement interest … general corresponds to money growth rates rising with inflation. When prices are not completely flexible, this implies that a …

In this paper, we analyze the relation between interest rate targets and money supply in a (bubble-free) rational … general corresponds to money growth rates rising with inflation. When prices are not completely flexible, this implies that a … non-destabilizing money supply cannot implement a forward-looking and active interest rate rule. This principle also …

This paper examines how money demand induced real balance effects contribute to the determination of the price level …-of-period money enters the utility function. Real money can then serve as a state variable, implying that interest rate setting must … be passive for unique, stable, and non-oscillatory equilibrium sequences. When end-of-period money provides utility, an …

the period 1969-2000. While the feedback from output gap is always negative, the response of money supply to changes in … determinacy. Viewed through the money supply lens, Federal Reserve policy substantially changed over time, but has never allowed …

by inertial interest rate adjustments or by money injections. These equilibria are associated with lower welfare losses … that the central bank's plan can uniquely be implemented in a history dependent way by money injections, whereas inertial …

This paper examines whether the U.S. Federal Reserve has adjusted high-powered money supply in response to … money supply to changes in inflation varies considerably across time. The inflation feedback is negative in the post-1979 … money supply lens, the Fed has thus never allowed for endogenous fluctuations, which contrasts conclusions drawn from …

We assess the time-varying money's role in the post-WWII U.S. business cycle by estimating a new-Keynesian framework … policymakers to money growth. Rolling-window Bayesian estimations a la Canova (2009) are contrasted to a full sample fixed …-coefficient investigation. Our results suggest that the assumption of stable parameters is unwarranted. The omission of money may induce biased …

by inertial interest rate adjustments or by money injections. These equilibria are associated with lower welfare losses … that the central bank's plan can uniquely be implemented in a history dependent way by money injections, whereas inertial …