Alternative specifications of the demand for money and their implications for forecasting and policy analysis with large macroeconomic models |
| |
Authors: | Cary Leahey Russell Robins |
| |
Institution: | Shearson Lehman Brothers, Inc., USA |
| |
Abstract: | The demand for money is an important function in large macroeconomic models because of its central role in monetary policy. The interest rate responsiveness of money demand determines the interest rate changes consistent with the initial change in monetary policy and the subsequent changes on aggregate demand and the price level. This paper uses the DRI macroeconometric model to investigate these issues, finding that the model's predictive power and its estimates of the relative potency of monetary and fiscal policy are dependent upon the specification of the money demand function. |
| |
Keywords: | Address correspondence to Cary Leahey Shearson Lehman Brothers Inc 55 Water Street 41st Floor New York NY 10041 USA |
本文献已被 ScienceDirect 等数据库收录! |