Creator: Bryant, John B. and Wallace, Neil. Series: Working paper (Federal Reserve Bank of Minneapolis. Research Dept.) Number: 123 Abstract:
In "Open Market Operations in a Model of Regulated, Insured Intermediaries" [JPE, forthcoming] we show that once-for-all open market purchases need not be inflationary. Here we show this result can carry over to various stationary accommodation rules given stochastic deficits. In particular, the inflationary and deflationary effects of stochastic deficits are not offset by, nor welfare improved by, a monetary policy that leans toward monetarism. Moreover, a constant money growth rule is not in the class of stationary policies given the kind of stochastic deficit we analyze, which by itself is a serious indictment of the monetarist proposal.
关键词: Accomodation rules, Debt, Monetarism, Inflation, and Deflation 学科: H62 - National budget, deficit, and debt - Deficit ; Surplus and E51 - Monetary policy, central banking, and the supply of money and credit - Money supply ; Credit ; Money multipliers