Friedman's Money Supply Rule vs Optimal Interest Rate Policy
نویسندگان
چکیده
منابع مشابه
On the Equivalence of Money Growth and Interest Rate Policy
Central bank behavior is often summarized by simple rules for operating targets, i.e., for a short-run nominal interest rate or for a money growth rate. In this paper we examine conditions under which these rules lead to identical fundamental solutions of a conventional business cycle model. When prices are ‡exible, forward looking interest rate rules can be equivalent to money growth policy. I...
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To be added.] ∗This is a revision of the text delivered by the second author as the Jacob Marschak Lecture at the 2001 Far Eastern Meeting of the Econometric Society, Kobe, Japan, July 21, 2001. We thank Julio Rotemberg and Lars Svensson for helpful discussions, and the National Science Foundation, through a grant to the NBER, for research support. Views expressed are those of the authors and d...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2003
ISSN: 1556-5068
DOI: 10.2139/ssrn.438506