Money's Role in the Monetary Business Cycle

Peter Ireland ()

No 458, Boston College Working Papers in Economics from Boston College Department of Economics

Abstract: A small, structural model of the monetary business cycle implies that real money balances enter into a correctly-specified, forward-looking IS curve if and only if they enter into a correctly-specified, forward-looking Phillips curve. The model also implies that empirical measures of real balances must be adjusted for shifts in money demand to accurately isolate and quantify the dynamic effects of money on output and inflation. Maximum likelihood estimates of the model's parameters take both of these considerations into account, but still suggest that money plays a minimal role in the monetary business cycle.

Keywords: Money; Business Cycles; New Keynesian Models (search for similar items in EconPapers)
JEL-codes: E31 E32 E52 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mon
Date: 2000-04-10
View citations in EconPapers

Downloads: (external link)
http://fmwww.bc.edu/EC-P/WP458.pdf main text (application/pdf)
http://fmwww.bc.edu/EC-P/WP458.zip data and programs (application/zip)

Related works:
Working Paper: Money's Role in the Monetary Business Cycle (2001)
Journal Article: Money's Role in the Monetary Business Cycle (2004)
Software Item: Matlab code for Money's Role in the Monetary Business Cycle
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:boc:bocoec:458

Access Statistics for this paper

More papers in Boston College Working Papers in Economics from Boston College Department of Economics
Address: Boston College, 140 Commonwealth Avenue, Chestnut Hill MA 02467 USA
Contact information at EDIRC.
Series data maintained by Christopher F Baum ().