Commentary on "Assessing monetary policy effects using daily federal funds futures contracts"

Monetary policy ; Federal funds rate

International banking facilities

Banks and banking, International

A guide to foreign exchange markets

Foreign exchange

Central bank structure, policy efficiency, and macroeconomic performance: exploring empirical relationships - commentary

Monetary policy ; Banks and banking, Central

Dutch disease or monetarist medicine?: The British economy under Mrs. Thatcher

Great Britain ; Economic development

Empirical evidence on the recent behavior and usefulness of simple-sum and weighted measures of the money stock

Money supply

How the 1992 legislation will affect European financial services

European Economic Community

Are trade deficits a problem?

Balance of payments ; International trade

Money and sectoral output dynamics in the United States, quarterly 1950/III to 1982/IV

The impact of money growth and money growth surprises is investigated in a framework in which GNP is disaggregated into its major sectoral components. The evidence presented is not fully consistent with a new classical interpretation of the business cycle. In particular light is thrown on the issue of the lag effect of money surprises. It is discovered that, even when sectoral interactions are accounted for, there are effects of lagged money growth. These lags are inconsistent with an equilibrium/rational expectations approach to business cycles. It is also discovered that growth in an 'outside' component of money has significant real effects. The approach adopted offers the possibility that a structural disaggregation of the supple side of the economy may offer advantages not available in either natural rate or Keynesian macroeconomic models.

Money and disaggregate supply in the United States, 1950-1982

The impact of money growth and money growth surprises on real output by sector is investigated. It is shown that money provides a significant contribution to the explanation of the real output cycles in almost all sectors of the U.S. economy. Anticipated money is found to have real effects, though there is some evidence that the real impact of money surprises is larger. ; The approach adopted offers the possibility of a new macroeconomics based upon major output categories, in contrast to the traditional Keynesian approach based upon expenditure categories. The way is, thereby, opened up for a genuine 'structural' or supply side macroeconomics, which is aggregative and can be analyzed by means of principles of optimization, and in which individual sector outputs are non-unique even in full equilibrium.