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Replacing The Fomc By A Pc

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  • THOMAS MAYER

Abstract

Recent behavior of velocity suggests that a stable monetary growth rate rule could have dangerous consequences. Hence this paper suggests a compromise–adjusting the money growth rate only in accordance with past changes in velocity. This preserves most of the benefits of a stable monetary growth rate rule.

Suggested Citation

  • Thomas Mayer, 1987. "Replacing The Fomc By A Pc," Contemporary Economic Policy, Western Economic Association International, vol. 5(2), pages 31-43, April.
  • Handle: RePEc:bla:coecpo:v:5:y:1987:i:2:p:31-43
    DOI: 10.1111/j.1465-7287.1987.tb00254.x
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    File URL: https://doi.org/10.1111/j.1465-7287.1987.tb00254.x
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    References listed on IDEAS

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    1. Barro, Robert J. & Gordon, David B., 1983. "Rules, discretion and reputation in a model of monetary policy," Journal of Monetary Economics, Elsevier, vol. 12(1), pages 101-121.
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    8. Friedman, Milton, 1982. "Monetary Policy: Theory and Practice," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 14(1), pages 98-118, February.
    9. James Tobin, 1970. "Money and Income: Post Hoc Ergo Propter Hoc?," The Quarterly Journal of Economics, Oxford University Press, vol. 84(2), pages 301-317.
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    11. Tobin, James, 1983. "Monetary Policy: Rules, Targets, and Shocks," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 15(4), pages 506-518, November.
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    Cited by:

    1. Robert D. Auerbach, 1991. "Institutional Preservation At The Federal Reserve," Contemporary Economic Policy, Western Economic Association International, vol. 9(3), pages 46-58, July.

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