The Own-Price of Money and a New Channel of Monetary Transmission

Michael T. Belongia () and Peter Ireland ()

No 9341, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Traditionally, the effects of monetary policy actions on output are thought to be transmitted via monetary or credit channels. Real business cycle theory, by contrast, highlights the role of real price changes as a source of revisions in spending and production decisions. Motivated by the desire to focus on the effects of price changes in the monetary transmission mechanism, this paper incorporates a direct measure of the real own-price of money into an estimated vector autoregression and a calibrated real business cycle model. Consistent with this new view of the monetary transmission mechanism, both approaches reveal that movements in the own-price of money are strongly related to movements in output.

JEL-codes: E32 E51 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-dge and nep-mon
Date: 2002-11
Note: ME
View list of references

Downloads: (external link)
http://www.nber.org/papers/w9341.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html.

Related works:
Working Paper: The Own-Price of Money and a New Channel of Monetary Transmission (2002)
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:nbr:nberwo:9341

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w9341
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc
Address: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Contact information at EDIRC.
Series data maintained by ().