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Interest rate rules vs. money growth rules a welfare comparison in a cash-in-advance economy

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  • Carlstrom, Charles T.
  • Fuerst, Timothy S.

Abstract

A consideration of the welfare consequences of two simple monetary policy rules--an interest rate peg and a money growth peg--in a dynamic general-equilibrium model, indicating that the interest rate rule dominates the money growth rule.
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  • Carlstrom, Charles T. & Fuerst, Timothy S., 1995. "Interest rate rules vs. money growth rules a welfare comparison in a cash-in-advance economy," Journal of Monetary Economics, Elsevier, vol. 36(2), pages 247-267, November.
    • Handle: RePEc:eee:moneco:v:36:y:1995:i:2:p:247-267
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