Purpose: This study describes a unique monetary reaction rule adopted by the Lebanese Central Bank. Unlike international standards in most countries, the Lebanese monetary rule maintains the supply and demand of money in equilibrium and neutralises money shocks. The paper determines whether...

The purpose of this paper is to revisit the evidence on the excess smoothness of consumption within the permanent income model, by using recently available monthly data. Two formulations of the univariate process of personal disposable income are adopted: in the levels and in the log-levels....