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William Poole in der offenen Volkswirtschaft


  • Friedrich L. Sell

    (Universität der Bundeswehr München, Institut für Volkswirtschaftslehre, D-85577 Neubiberg)

  • Silvio Kermer

    (Universität der Bundeswehr München, Institut für Volkswirtschaftslehre, D-85577 Neubiberg)


Given all the evidence supporting Milton Friedman’s proposition that inflation is now and everywhere a monetary phenomenon, it seems that we are wrong when we tend to ignore the behaviour of the monetary aggregates at our peril. The total neglect of information about the monetary aggregates in the Taylor rule is possibly a strong signal into that erroneous direction. Moreover, so-called “New Keynesianism” has put forward that there is no more need to treat the money market equilibrium in an “LM-setting”. Our paper goes back to William Poole’s seminal paper (1970) on interest rate and money supply rules and extends his earlier work to the open economy, various types of shocks and to the analysis of cooperative and noncooperative behaviour of central banks. The results achieved confirm that the inclusion of the money market equilibrium enhances the possibilities to compare the costs and benefits of different monetary policy strategies under cooperative or non-cooperative behaviour.

Suggested Citation

  • Friedrich L. Sell & Silvio Kermer, 2008. "William Poole in der offenen Volkswirtschaft," Credit and Capital Markets, Credit and Capital Markets, vol. 41(4), pages 467-500.
  • Handle: RePEc:kuk:journl:v:41:y:2008:i:4:p:467-500

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    References listed on IDEAS

    1. Martin Hellwig, 2009. "Systemic Risk in the Financial Sector: An Analysis of the Subprime-Mortgage Financial Crisis," De Economist, Springer, vol. 157(2), pages 129-207, June.
    2. Hellwig, Martin, 1997. "Unternehmensfinanzierung, Unternehmenskontrolle und Ressourcenallokation: Was leistet das Finanzsystem?," Sonderforschungsbereich 504 Publications 97-02, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
    3. Barry Eichengreen, 2009. "From the Asian crisis to the global credit crisis: reforming the international financial architecture redux," International Economics and Economic Policy, Springer, vol. 6(1), pages 1-22, June.
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    More about this item

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements


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