Zins- und Geldmengensteuerung in der offenen Volkswirtschaft: Eine Referenz an William Poole (und zugleich eine Kritik an der "Neuen Keynesianischen Makroökonomik")

Friedrich L. Sell

No 2005,2, Working Papers in Economics from Bundeswehr University Munich, Economic Research Group

Abstract: Given all the evidence supporting Milton Friedman's proposition that inflation is now and every-where a monetary phenomenon, it seems that we are wrong when we tend to ignore the behaviour of the monetary aggregates at our peril. The total neglect of information about the monetary aggregates in the Taylor rule is a strong signal into that erroneous direction. Moreover, so-called "New Keynesianism" has put forward that there is no more need to treat the money market equilibrium in an "LM-setting". Our paper goes back to William Poole's analysis of interest rate and money supply rules and extends his earlier analysis to the open economy, alternative exchange rate regimes and various types of shocks. The results achieved confirm not only that the inclusion of the money market equilibrium enhances the possibilities to compare the costs and benefits of different monetary strategies, but also suggests that monetary strategies such as Taylor rules can be improved when opening up natural avenues to extend the rule by considering monetary aggregates.

Keywords: Schockabsorption; Geldpolitische Strategien; Wechselkursregime; Absorption of Shocks; Strategic Monetary Policy; Exchange Rate Regimes (search for similar items in EconPapers)
JEL-codes: E42 E52 F32 (search for similar items in EconPapers)
Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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