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The effects of disinflationary policies on monetary velocity

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Author Info
William T. Gavin
William G. Dewald

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Abstract

A study of the effect of disinflation policies on monetary velocity, which shows a systematic relation between unexpected changes in the money-income relationship and changes in the trends of inflation rates, and which concludes that the failure to commit to a stable price policy tends to destabilize the economy.

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File URL: http://www.clevelandfed.org/research/Workpaper/1989/wp8901.pdf
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Paper provided by Federal Reserve Bank of Cleveland in its series Working Paper with number 8901.

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Date of creation: 1989
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Handle: RePEc:fip:fedcwp:8901

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Keywords: Velocity of money ; Inflation (Finance) ; Monetary policy;

References listed on IDEAS
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.:

  1. Karamouzis, N. & Lombra, R., 1988. "Federal Reserve Policy Making: An Overview And Analysis Of The Policy Process," Papers 0-88-8, Pennsylvania State - Department of Economics.
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  2. Roley, V Vance, 1985. "Money Demand Predictability," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 17(4), pages 611-41, November. [Downloadable!] (restricted)
  3. Kormendi, Roger C & Meguire, Philip G, 1984. "Cross-Regime Evidence of Macroeconomic Rationality," Journal of Political Economy, University of Chicago Press, vol. 92(5), pages 875-908, October. [Downloadable!] (restricted)
  4. Rasche, 1988. "Demand Functions For U.S. Money And Credit Measures," Papers 8718, Michigan State - Econometrics and Economic Theory.
  5. Rasche, Robert H., 1987. "M1 -- Velocity and money-demand functions: Do stable relationships exist?," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 27(1), pages 9-88, January. [Downloadable!] (restricted)
  6. Poole, William, 1988. "Monetary Policy Lessons of Recent Inflation and Disinflation," Journal of Economic Perspectives, American Economic Association, vol. 2(3), pages 73-100, Summer. [Downloadable!] (restricted)
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