Endogenous Money or Sticky Prices?

Peter Ireland

No 499, Boston College Working Papers in Economics from Boston College Department of Economics

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 an important role in accounting for key features of the data.

Keywords: Endogenous money; Sticky Prices; Business Cycles (search for similar items in EconPapers)
JEL-codes: E31 E32 E52 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2001-06-18
Note: This paper has also been published as NBER WP 9390.
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://fmwww.bc.edu/EC-P/wp499.pdf main text (application/pdf)

Related works:
Journal Article: Endogenous money or sticky prices? (2003)
Working Paper: Endogenous Money or Sticky Prices? (2002)
Software Item: Matlab code for "Endogenous Money or Sticky Prices?" (2001)
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: https://EconPapers.repec.org/RePEc:boc:bocoec:499

Access Statistics for this paper

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