to the path of short-term rates; 3) deposit insurance has been extended, helping to insulate the money stock from credit …

justified empirically. Both the relation between money and inflation, and between money and aggregate demand, are considered … by money growth. This relationship arises from a conventional aggregate-demand channel; an emphasis on the link between … monetary aggregates and inflation in no way requires a direct channel connecting money and inflation. The relevance of money …

IS-LM framework tends to understate the value of money as an indicator for monetary policy. …

States, controlling for the short-term real interest rate. In this paper, I show that the same property of base money holds … included in the money demand function. Because the long-term real rate matters for aggregate demand, the presence of the long …-term nominal rate in the money demand function increases the effect of nominal money stock changes on real aggregate demand when …

interest rates for a given path of short-term rates; 3) deposit insurance was extended, helping to insulate the money stock …

with the use of models in which money and other measures of monetary policy stance do not appear in the price …

We examine the role of money in three environments: the New Keynesian model with separable utility and static money …. The last two variants imply forward-looking behavior of real money balances, with forecasts of future interest rates … estimates confirm the forward-looking character of money demand. A consequence is that real money balances are valuable in …

We examine the role of money in three environments: the New Keynesian model with separable utility and static money …. The last two variants imply forward-looking behaviour of real money balances, with forecasts of future interest rates … estimates confirm the forward-looking character of money demand. A consequence is that real money balances are valuable in …

Friedman and Schwartz (1982) and Goodhart (1982) report a zero correlation between money growth and output growth in U … money growth/output growth correlation is indeed recoverable from U.K. historical data. Strike activity in the 1970s and … correlation between money and output in the United Kingdom …