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Effectiveness of Specific Monetary Policy by the Currency Board

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  • Kamelia Assenova

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    Abstract

    This paper asks if when the monetary authority works under the rules of Currency Board, the weakness of IS–LM model for analysis the influence of monetary policy on the aggregate output reveals. The main result is that by the Currency Board the weakness does not exist. In this case the monetary policy keeps the role to influence on the aggregate supply. The result is testing in the case of Bulgaria for the period 2007–2012. Copyright CEEUN 2013

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    File URL: http://hdl.handle.net/10.1007/s11300-013-0290-6
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    Bibliographic Info

    Article provided by Springer in its journal Transition Studies Review.

    Volume (Year): 20 (2013)
    Issue (Month): 3 (November)
    Pages: 325-334

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    Handle: RePEc:spr:trstrv:v:20:y:2013:i:3:p:325-334

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    Related research

    Keywords: Monetary policy; Economic growth; Bernanke - Blinder model; E50; E58; E43; E44;

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    1. Lucas, Robert Jr., 1972. "Expectations and the neutrality of money," Journal of Economic Theory, Elsevier, vol. 4(2), pages 103-124, April.
    2. Tobin, James, 1969. "A General Equilibrium Approach to Monetary Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(1), pages 15-29, February.
    3. Robert G. King, 1993. "Will the New Keynesian Macroeconomics Resurrect the IS-LM Model?," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 67-82, Winter.
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