New Monetarist Economics: methods

Stephen Williamson and Randall Wright

No 442, Staff Report from Federal Reserve Bank of Minneapolis

Abstract: This essay articulates the principles and practices of New Monetarism, our label for a recent body of work on money, banking, payments, and asset markets. We first discuss methodological issues distinguishing our approach from others: New Monetarism has something in common with Old Monetarism, but there are also important differences; it has little in common with Keynesianism. We describe the principles of these schools and contrast them with our approach. To show how it works, in practice, we build a benchmark New Monetarist model, and use it to study several issues, including the cost of inflation, liquidity and asset trading. We also develop a new model of banking.

Keywords: Money; Monetary policy (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-ban, nep-dge, nep-hpe and nep-mac
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Citations: View citations in EconPapers (26)

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Related works:
Journal Article: New monetarist economics: methods (2010)
Working Paper: New Monetarist Economics: Methods (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedmsr:442

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