Index Catalog // Research Database

Creator:: Smith, Bruce D., d. 2002.
Series:: Working paper (Federal Reserve Bank of Minneapolis. Research Dept.)
Number:: 234
Abstract:: Current approaches to monetary theory and policy owe much to the "quantity theory of money." However, recent theoretical developments suggest that the manner in which money is introduced is more important, even for price level movements, than the quantity of money. Colonial American experience provides a laboratory for discriminating between these views. It is shown here that the nature of backing, rather than the quantity of money, determined its value. Large secular inflations were ended by changing the nature of backing despite the continuance of large note issues (and despite the absence of a metallic standard). Extremely large note issues and note withdrawals are shown not to have produced inflation (currency depreciation) or deflation (currency appreciation).
Keyword:: Quantity theory, Colonial America, Currency, and Fiat money
Subject:: E42 - Money and interest rates - Monetary systems ; Standards ; Regimes ; Government and the monetary system ; Payment systems, E52 - Monetary policy, central banking, and the supply of money and credit - Monetary policy, and N11 - Macroeconomics and monetary economics ; Growth and fluctuations - United States ; Canada : Pre-1913

Creator:: Roberds, William.
Series:: Working paper (Federal Reserve Bank of Minneapolis. Research Dept.)
Number:: 298
Abstract:: The consequences of a straightforward monetary targeting scheme are examined for a simple dynamic macro model. The notion of "targeting" used below is the strategic one introduced by Rogoff (1985). Numerical simulations are used to demonstrate that for the model under consideration, monetary targeting is likely to lead to a deterioration of policy performance. These examples cast doubt upon the general efficacy of simple targeting schemes in dynamic rational expectations models.
Keyword:: Monetary targeting, Macroeconomic model, Monetary policy, and Rational expectations
Subject:: C61 - Mathematical methods and programming - Optimization techniques ; Programming models ; Dynamic analysis and E52 - Monetary policy, central banking, and the supply of money and credit - Monetary policy

Creator:: Levine, David K.
Series:: Working paper (Federal Reserve Bank of Minneapolis. Research Dept.)
Number:: 388
Abstract:: Previous authors have argued that the optimal monetary policy is contractionary. If buyers value consumption substantially more than sellers, there is some randomness and informational constraints make asset trading useful, we show that there is an incentive compatible expansionary policy that dominates all incentive compatible contractionary policies.
Keyword:: Expansion, Trade, Optimal monetary policy, Asset trading, Contraction, and Private information
Subject:: D82 - Information, knowledge, and uncertainty - Asymmetric and private information and E52 - Monetary policy, central banking, and the supply of money and credit - Monetary policy