Endogenous Money or Sticky Prices?

Peter Ireland ()

No 9390, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: What explains the correlations between nominal and real variables in the postwar US data? Are these correlations indicative of significant nominal price rigidity? Or do they simply reflect the particular way that monetary policymakers react to developments in the real economy? To answer these questions, this paper uses maximum likelihood to estimate a model of endogenous money. This model allows, but does not require, nominal prices to be sticky. The results show that nominal price rigidity, over and above endogenous money, plays a role in accounting for key features of the data.

JEL-codes: E31 E32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mon
Date: 2002-12
Note: ME
View list of references View citations in EconPapers

Downloads: (external link)
http://www.nber.org/papers/w9390.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: Endogenous Money or Sticky Prices? (2001)
Journal Article: Endogenous money or sticky prices? (2003)
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:9390

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w9390
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 ().