We study the properties of alternative central bank targeting procedures in a general equilibrium, monetary model of the US economy with labor contracts, endogenous velocity and three shocks: money demand, supply and fiscal. Money demand â€“ velocity â€“ shocks emerge as the main source of macroeconomic volatility. Nominal interest rate targeting results in greater stability than money targeting. Interestingly, this holds independently of the type of the shock (unlike Poole). Interest rate targeting also generates a higher level of welfare.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 56 (2011)
Issue (Month): 4 (December)
|Contact details of provider:|| Web page: http://www.rebel-journal.org/|
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.:
- Charles T. Carlstrom & Timothy S. Fuerst, 1995.
"Interest rate rules vs. money growth rules: a welfare comparison in a cash-in-advance economy,"
9504, Federal Reserve Bank of Cleveland.
- Carlstrom, Charles T. & Fuerst, Timothy S., 1995. "Interest rate rules vs. money growth rules a welfare comparison in a cash-in-advance economy," Journal of Monetary Economics, Elsevier, vol. 36(2), pages 247-267, November.
- Canzoneri, Matthew B & Dellas, Harris, 1996. " Monetary Integration in Europe: Implications for Real Interest Rates and Stock Markets," Scandinavian Journal of Economics, Wiley Blackwell, vol. 98(4), pages 541-47, December.
- Canzoneri, Matthew B & Dellas, Harris, 1995.
"Real Interest Rates and Central Bank Operating Procedures,"
CEPR Discussion Papers
1099, C.E.P.R. Discussion Papers.
- Canzoneri, Matthew B. & Dellas, Harris, 1998. "Real interest rates and central bank operating procedures," Journal of Monetary Economics, Elsevier, vol. 42(3), pages 471-494, October.
- Marvin Goodfriend & David H. Small (), 1993. "Operating procedures and the conduct of monetary policy: conference proceedings," Proceedings, Board of Governors of the Federal Reserve System (U.S.).
- Gray, Jo Anna, 1976. "Wage indexation: A macroeconomic approach," Journal of Monetary Economics, Elsevier, vol. 2(2), pages 221-235, April.
- Mccallum, Bennet T., 1988. "Robustness properties of a rule for monetary policy," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 29(1), pages 173-203, January.
When requesting a correction, please mention this item's handle: RePEc:sen:rebelj:v:56:i:4:y:2011:p:405-426. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Petra Van den Bempt)
If references are entirely missing, you can add them using this form.