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A critique of theories of money stock determination Author info | Abstract | Publisher info | Download info | Related research | Statistics Robert L. Hetzel
Many different models of money stock determination exist in the literature. An attempt is made here to understand why the differences in these models arise. Differences in models are ascribed first to the (usually implicit) role assigned to the price level. From this perspective, models fall into two categories. Models in the quantity theory tradition require that the price level adjust in order to cause the real quantity of money to equal the real quantity demanded. In contrast, in the real bills or banking school tradition, the nominal quantity of money adjusts in order to provide the real quantity demanded.
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Paper provided by Federal Reserve Bank of Richmond in its series Working Paper with number
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Date of creation: 1986Date of revision:
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Keywords: Money ; Money supply ; Monetary theory ; 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.:
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[Downloadable!] (restricted)
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[Downloadable!] (restricted)
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[Downloadable!] (restricted)
Barro, Robert J & Gordon, David B, 1983.
"A Positive Theory of Monetary Policy in a Natural Rate Model ,"
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[Downloadable!] (restricted)
Other versions: Matthew B. Canzoneri & Dale W. Henderson & Kenneth S. Rogoff, 1981.
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International Finance Discussion Papers
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[Downloadable!]
Thomas J. Sargent, 1973.
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[Downloadable!]
Kaminow, Ira, 1977.
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Tinsley, Peter A, et al, 1982.
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Journal of Money, Credit and Banking ,
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[Downloadable!] (restricted)
Lyle E. Gramley & Samuel B. Chase, Jr., 1965.
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Federal Reserve Bulletin ,
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[Downloadable!]
Johannes, James M & Rasche, Robert H, 1981.
"Can the Reserves Approach to Monetary Control Really Work? ,"
Journal of Money, Credit and Banking ,
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[Downloadable!] (restricted)
Brunner, Karl & Meltzer, Allan H, 1972.
"Money, Debt, and Economic Activity ,"
Journal of Political Economy ,
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[Downloadable!] (restricted)
Thomson, Thomas D & Pierce, James L & Parry, Robert T, 1975.
"A Monthly Money Market Model ,"
Journal of Money, Credit and Banking ,
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[Downloadable!] (restricted)
James Tobin, 1963.
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Cowles Foundation Discussion Papers
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[Downloadable!]
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