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Some not so unpleasant monetarist arithmetic

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  • Michael Dotsey

Abstract

This paper analyzes the quantitative significance of Sargent and Wallace's (1981) \"Some Unpleasant Monetarist Arithmetic\" in a model that is parameterized to correspond with U.S. data. The major result is that the monetarist arithmetic is not overly unpleasant and that the nominal side of the economy is not very sensitive to whether money growth does or does not respond to government debt.

Suggested Citation

  • Michael Dotsey, 1995. "Some not so unpleasant monetarist arithmetic," Working Paper 95-02, Federal Reserve Bank of Richmond.
    • Handle: RePEc:fip:fedrwp:95-02
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    Keywords

    Inflation (Finance); Monetary policy;

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