Zins- und Geldmengensteuerung in der offenen Volkswirtschaft: Eine Referenz an William Poole (und zugleich eine Kritik an der "Neuen Keynesianischen Makroökonomik")
Given all the evidence supporting Milton Friedman's proposition that inflation is now and every-where 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 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 analysis of interest rate and money supply rules and extends his earlier analysis to the open economy, alternative exchange rate regimes and various types of shocks. The results achieved confirm not only that the inclusion of the money market equilibrium enhances the possibilities to compare the costs and benefits of different monetary strategies, but also suggests that monetary strategies such as Taylor rules can be improved when opening up natural avenues to extend the rule by considering monetary aggregates.
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Postal: Werner-Heisenberg-Weg 39, D-85577 Neubiberg|
Phone: +49(0)89 - 6004-4239
Fax: +49(0)89 - 6014693
Web page: http://wow.w3.rz.unibw-muenchen.de/
More information through EDIRC
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.:
- Peter Bofinger & Eric Mayer, 2007.
"Monetary and Fiscal Policy Interaction in the Euro Area with Different Assumptions on the Phillips Curve,"
Open Economies Review,
Springer, vol. 18(3), pages 291-305, July.
- Bofinger, Peter & Mayer, Eric, 2004. "Monetary and Fiscal policy Interaction in the Euro Area with Different Assumptions on the Phillips Curve," CEPR Discussion Papers 4790, C.E.P.R. Discussion Papers.
- Bofinger, Peter & Mayer, Eric, 2003. "Monetary and fiscal policy interaction in the Euro area with different assumptions on the Phillips curve," W.E.P. - Würzburg Economic Papers 40, University of Würzburg, Chair for Monetary Policy and International Economics.
- Bofinger, Peter & Mayer, Eric, 2004. "Monetary and Fiscal Policy Interaction in the Euro Area with different assumptions on the Phillips curve," Center for European, Governance and Economic Development Research Discussion Papers 27, University of Goettingen, Department of Economics.
- William Poole, 1970. "Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model," The Quarterly Journal of Economics, Oxford University Press, vol. 84(2), pages 197-216.
- Sell, Friedrich L., 2004. "Währungspolitik im Dienste von Entwicklung : Immer noch ein Forschungsprogramm!," Working Papers in Economics 2004,2, Universität der Bundeswehr München, Economic Research Group.
- William Poole, 1999.
"Monetary policy rules?,"
81, Federal Reserve Bank of St. Louis.
- David Romer, 2000.
"Keynesian Macroeconomics without the LM Curve,"
NBER Working Papers
7461, National Bureau of Economic Research, Inc.
- Gerberding, Christina & Worms, Andreas & Seitz, Franz, 2004. "How the Bundesbank really conducted monetary policy: An analysis based on real-time data," Discussion Paper Series 1: Economic Studies 2004,25, Deutsche Bundesbank, Research Centre.
- Guender, Alfred V. & Tam, Julie, 2004. "On the performance of nominal income targeting as a strategy for monetary policy in a small open economy," Journal of International Money and Finance, Elsevier, vol. 23(2), pages 143-163, March.
- William Poole, 1969.
"Optimal choice of monetary policy instruments in a simple stochastic macro model,"
Special Studies Papers
2, Board of Governors of the Federal Reserve System (U.S.).
- William Poole, 1970. "Optimal choice of monetary policy instruments in a simple stochastic macro model," Staff Studies 57, Board of Governors of the Federal Reserve System (U.S.).
When requesting a correction, please mention this item's handle: RePEc:zbw:ubwwpe:20052. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.