Monetary Policy and the Transaction Role of Money in the US

Datos Bibliográficos

ID9710886
AutoresAlexander Kriwoluzky (University of Bonn), Christian A Stoltenberg (0000-0001-5922-9051, University of Amsterdam and Tinbergen Institute)
Año2015
Volumen125
Número587
Páginas1452-1473
Fecha de publicación2015-09-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Economic Journal (JOURNAL)
Identificadores de la revistaISSN: 0013-0133 • E-ISSN: 1468-0297
EditorialOxford University Press (OUP) (PUBLISHER)
DOI10.1111/ecoj.12151
OpenAlexW2102977990
IdiomaEN
Referencias citadas32

The declining importance of money in transactions can explain the well-known fact that U.S. interest rate policy was passive in the pre-Volcker period and active after 1982. We generalise a standard cashless New Keynesian model (Woodford2003) by incorporating an explicit transaction role for money. In the pre-Volcker period, we estimate that money did play an important role and determinacy required a passive interest rate policy. However, after 1982, money no longer played an important role in facilitating transactions. Correspondingly, the conventional view prevails and an active policy ensured equilibrium determinacy

Database transaction · Determinacy · Economics · Endogenous money · Interest rate · Keynesian economics · Macroeconomics · Monetary economics · Monetary policy · New Keynesian economics · Economic theories and models · Economic Theory and Policy · Monetary Policy and Economic Impact