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Interest rate rules vs. money growth rules: a welfare comparison in a cash-in-advance economy

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  • Charles T. Carlstrom
  • Timothy S. Fuerst

Abstract

A consideration of the welfare consequences of two simple monetary policy rules--an interest rate peg and a money growth peg--in a dynamic general-equilibrium model, indicating that the interest rate rule dominates the money growth rule.

Suggested Citation

  • Charles T. Carlstrom & Timothy S. Fuerst, 1995. "Interest rate rules vs. money growth rules: a welfare comparison in a cash-in-advance economy," Working Papers (Old Series) 9504, Federal Reserve Bank of Cleveland.
  • Handle: RePEc:fip:fedcwp:9504
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    References listed on IDEAS

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