EconPapers    
Economics at your fingertips  
 

Is There a Role for Monetary Aggregates in the Conduct of Monetary Policy?

Arturo Estrella and Frederic Mishkin ()

No 5845, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We examine the potential policy role of monetary aggregates by attempting to use them as effectively as possible in the analysis of empirical relationships. We consider three possible roles: as information variables, as indicators of policy actions and as instruments in a policy rule. These require successively stronger and more stable relationships between the aggregates and the final policy targets. Our results show that in the United States since 1979, the monetary aggregates fall considerably short of those requirements, and results with German M3 are hardly more favorable. We also investigate whether empirical relationships are not reflective of causal relationships because of the use of these variables in counter cyclical policy. The results are reasonably consistent with that notion in the case of interest rates, but not in the case of the aggregates.

JEL-codes: E52 (search for similar items in EconPapers)
Date: 1996-11
Note: EFG ME
References: View complete reference list from CitEc
Citations: View citations in EconPapers (15) Track citations by RSS feed

Published as Journal of Monetary Economics, Vol. 40, no. 2 (1997): 279-304.

Downloads: (external link)
http://www.nber.org/papers/w5845.pdf (application/pdf)

Related works:
Journal Article: Is there a role for monetary aggregates in the conduct of monetary policy? (1997) Downloads
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:nbr:nberwo:5845

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w5845

Access Statistics for this paper

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

 
Page updated 2019-08-10
Handle: RePEc:nbr:nberwo:5845