recognition to the intertemporal nature of households' saving decisions. Like traditional IS-LM, however, the optimizing version … tends to understate the value of money as an indicator for monetary policy. …

rate. Money’s role in monetary policy has been tertiary, at best. Indeed, several influential economists have suggested … that money is irrelevant for monetary policy. They suggest that central banks can control inflation by (i) controlling a … rate in order to exert greater control over longer-term rates. I offer an alternative perspective: namely, that money is …

determined by steady-state money growth. Woodford instead argues that the intercept term in the monetary authority's interest …, according to which it is appropriate to regard steady-state inflation as determined by steady-state money growth. The argument … the money growth rate. …

the origin of the aggregate volatility reduction. We show that states with relatively high concentrations in the durable-goods …