The Role of Countercyclical Monetary Policy
Bibliographic Data
| ID | 10179196 |
|---|---|
| Authors | Peter N Ireland (corresponding author) |
| Year | 1996 |
| Volume | 104 |
| Issue | 4 |
| Pages | 704-723 |
| Publication date | 1996-08-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/262039 |
| OpenAlex | W2047867296 |
| Language | EN |
| Citations received | 5 |
| References cited | 2 |
When firms set nominal prices in advance, optimal monetary policy insulates aggregate output against shocks to demand. It can do so, however, by following the constant money growth rule advocated by Milton Friedman; it need not respond to the shocks in an actively countercyclical way. In addition, to the extent that output fluctuations are driven by shocks to supply, money growth should be procyclical. Copyright 1996 by University of Chicago Press
Aggregate (composite · Aggregate demand · Aggregate supply · Economics · Keynesian economics · Macroeconomics · Monetary economics · Monetary policy · Money supply · Supply shock · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Monetary Policy and Economic Impact
| Citations per year | 0.18 |
|---|---|
| Citation span | 1998 - 2008 (11) |
| Highly cited | No |