In response to the financial crisis of 2008, the Federal Reserve radically increased the monetary base. Banks responded by increasing excess reserves rather than increasing bank loans, and the public responded with a substantial flight to liquidity in the form of currency and demand deposits. As a result, the money-supply multipliers substantially decreased, so that the actual money supply meas...

The Main Economic Indicators (MEI) has traditionally published a range of OECD zone aggregates for the narrow money and broad money concepts of monetary aggregates. These zones have been compiled on a fixed weight basis, with the weights being updated every five years coinciding with the change in OECD base year, the last update being in the summer of 2004 with the introduction of base year 200...

The referral priority program—an emerging business practice adopted by a growing number of technology companies that manage a waitlist of customers—enables existing customers on the waitlist to gain priority access if they successfully refer new customers to the waitlist. Unlike more commonly used referral reward programs, this novel mechanism does not offer monetary compensation to referring c...

I thank the Royal Monetary Authority of Bhutan and Governor H.E. Daw Tenzin for inviting me to address such a distinguished gathering. I thought of speaking on monetary policy in India for four reasons. First, the currencies of Bhutan and India, i.e., Ngultrum and Rupee are closely linked. Hence, monetary policy developments in India have implications for monetary policy in Bhutan. Second, in O...

I analyze monetary policy with interest on reserves and a large balance sheet. I show that conventional theories do not determine inflation in this regime, so I base the analysis on the fiscal theory of the price level. I find that monetary policy can peg the nominal rate, and determine expected inflation. With sticky prices, monetary policy can also affect real interest rates and output, thoug...

In this study, we examined the effects of monetary policy shocks on the performance of the Iranian macroeconomy and the banking system, under the different situations of the Basel II and III capital requirements regulations. By developing a DSGE Model and according to its structural shocks, four observable variables including output gap, bank capital adequacy, inflation, and money base growth r...

What should the monetary authority do when prices are sticky? One answer to this question is provided by the standard New Keynesian model of sticky prices. It says that optimal monetary policy should fully stabilize the long-term price level in many environments. For example, if all ‡uctuations are in the "IS curve", then the optimal monetary policy under commitment is simply for the short-term...

What should the monetary authority do when prices are sticky? One answer to this question is provided by the standard New Keynesian model of sticky prices. It says that optimal monetary policy should fully stabilize the long-term price level in many environments. For example, if all fluctuations are in the “IS curve,” then the optimal monetary policy under commitment is simply for the short-ter...

This paper addresses the problem of measurement of non-monetary economic activity, specifically in the area of free/open source software communities. It describes the problems associated with research on these communities in the absence of measurable monetary transactions, and suggests possible alternatives.. A class of techniques using software source code as factual documentation of economic ...