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Money Rules

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Author Info

  • Cees Ullersma
  • Jan Marc Berk
  • Bryan Chapple

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/binaries/Working%20Paper%2096_tcm46-146753.pdf
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Bibliographic Info

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
Date of revision:
Handle: RePEc:dnb:dnbwpp:096

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Web page: http://www.dnb.nl/en/
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Related research

Keywords: money; monetary policy; monetary transmission;

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