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The effects of disinflationary policies on monetary velocity

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Listed:
  • William G. Dewald
  • William T. Gavin

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.

Suggested Citation

  • William G. Dewald & William T. Gavin, 1989. "The effects of disinflationary policies on monetary velocity," Working Papers (Old Series) 8901, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:fedcwp:8901
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    References listed on IDEAS

    as
    1. Karamouzis, Nicholas & Lombra, Raymond, 1989. "Federal reserve policymaking: an overview and analysis of the policy process," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 30(1), pages 7-62, January.
    2. 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.
    3. 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.
    4. William S. Haraf, 1986. "Monetary Velocity and Monetary Rules," Cato Journal, Cato Journal, Cato Institute, vol. 6(2), pages 641-666, Fall.
    5. Gordon, Robert J, 1982. "Price Inertia and Policy Ineffectiveness in the United States, 1890-1980," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1087-1117, December.
    6. Roley, V Vance, 1985. "Money Demand Predictability," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 17(4), pages 611-641, November.
    7. V. Vance Roley, 1985. "Money Demand Predictability," NBER Working Papers 1580, National Bureau of Economic Research, Inc.
    8. 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.
    9. Rasche, 1988. "Demand Functions For U.S. Money And Credit Measures," Papers 8718, Michigan State - Econometrics and Economic Theory.
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    More about this item

    Keywords

    Velocity of money; Inflation (Finance); Monetary policy;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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