This paper provides a detailed examination of various money stock control procedures in a rational expectations environment. The analysis investigates the relative efficiency of controlling monetary aggregate through the use of an interest rate instrument or through various reserve measures...

Currently there is a growing literature exploring the features of optimal monetary policy in New Keynesian models under both commitment and discretion. This literature usually solves for the optimal allocations that are consistent with a rational expectations market equilibrium, but it does not...

Recently an intense debate has focused on M2's usefulness as an intermediate target for monetary policy. A review of two leading contributions to the debate indicates that their empirical results are sensitive to changes in key assumptions. Moreover, their empirical results lack the deep...