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Author Info
Cees Ullersma
Jan Marc Berk
Bryan Chapple

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Abstract

We assess a New Keynesian macro-economic model that is supplemented with a micro-founded role for money in determining aggregate demand and supply in order to better describe monetary policy transmission. In this model welfare is higher if the monetary authority takes money growth explicitly into account when setting interest rates.

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File URL: http://www.dnb.nl/en/binaries/Working%20Paper%20No%2E%2096-2006_tcm47-146753.pdf
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Paper provided by Netherlands Central Bank, Research Department in its series DNB Working Papers with number 096.

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Date of creation: Apr 2006
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Handle: RePEc:dnb:dnbwpp:096

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Related research
Keywords: money; monetary policy; monetary transmission;

Find related papers by JEL classification:
E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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