Is Money Neutral in the Long Run?
AbstractThe traditional neoclassical open-economy flexible exchange rate model is expanded to include a “credit channel” by incorporating a bank loan market. The new “credit view” model provides substantially different predictions concerning the neutrality of money and the types of autonomous shocks that might affect the real exchange rate.
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Bibliographic InfoPaper provided by University of Delaware, Department of Economics in its series Working Papers with number 05-04.
Length: 13 pages
Date of creation: 2005
Date of revision:
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Web page: http://www.lerner.udel.edu/departments/economics/department-economics/
More information through EDIRC
Credit Channel; Monetary policy; Fixed Exchange Rates; Money Neutrality;
Find related papers by JEL classification:
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
- E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-11-05 (All new papers)
- NEP-CBA-2005-11-05 (Central Banking)
- NEP-FMK-2005-11-05 (Financial Markets)
- NEP-IFN-2005-11-05 (International Finance)
- NEP-MAC-2005-11-05 (Macroeconomics)
- NEP-MON-2005-11-05 (Monetary Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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