Monetary Targets, Buffer Stock Money and Money Market Dynamics

Vito Muscatelli

Scottish Journal of Political Economy, 1990, vol. 37, issue 2, 166-83

Abstract: This paper develops a continuous time model of "buffer stock money" and incorporates it within a small macromodel with policy rules. The author examines the dynamic behavior of the system when the authorities treat the money stock as an intermediate objective. The performance of monetary targets is evaluated using both analytical results and numerical simulations. The model is subsequently extended to incorporate stochastic disturbances. The dynamic behavior of the model analyzed in this paper may offer some insights into the behavior of the money market when monetary targets are adopted in the presence of buffer stock behavior on the part of the private sector. Copyright 1990 by Scottish Economic Society.

Date: 1990
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:bla:scotjp:v:37:y:1990:i:2:p:166-83

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0036-9292

Access Statistics for this article

Scottish Journal of Political Economy is currently edited by Tim Barmby, Andrew Hughes-Hallett and Campbell Leith

More articles in Scottish Journal of Political Economy from Scottish Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().