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Many transmission channels of monetary policy have been proposed to enrich and deepen the understanding of its mechanisms. However, some channels have not been clarified, particularly for those unconventional quantitative policies implemented after 2008 financial crisis. In this paper, we develop a unified model of a credit economy where bank regulations and decisions and loanable funds market are placed at a central position, while stocks and flows are incorporated with each other to formulate banks' credit creation and circulation. We find that bank regulations can induce some new channels of monetary transmission by imposing credit constraints, including the new bank capital channel, the credit supply channel, the new bank balance sheet channel, and the new bank risk-taking channel. Comparing these channels with the traditional ones, we underscore the impact of bank regulations on monetary transmission. As aggregate demand can be decomposed into two monetary flows generated by money circulation and bank lending respectively, the direct channels of monetary transmission to aggregate demand can be renewed as follows: the money channel, the narrow money circulation channel, the new bank lending channel, and the repayment channel. In addition, based on the relevant data from the United States, we have conducted vector autoregressive (VAR) impulse response analysis to confirm the effectiveness of some direct channels. Our work not only aids in revisiting the monetary transmission from a credit view but also facilitates the assessment of efficiency of monetary policy. [ABSTRACT FROM AUTHOR]

We assess the bivariate relation between money growth and inflation in the euro area and the United States using hybrid time‐varying parameter Bayesian VAR models. Model selection based on marginal likelihoods suggests that the relation is statistically unstable across time in both regions. The effect of money growth on inflation weakened notably after the 1980s before strengthening after 2020. There is evidence that this time variation is related to the pace of price changes, as we find that the maximum impact of money growth on inflation is increasing in the trend level of inflation. These results caution against asserting a simple, time‐invariant relationship when modeling the joint dynamics of monetary aggregates and consumer prices. [ABSTRACT FROM AUTHOR]

We build a scenario for inflation in the United States in the years to come. Following Gao, Kulish, and Nicolini (2021), we use the quantity theory of money as a conceptual framework and confront the theory with evidence from both the United States and other OECD countries. We argue that a) the quantity theory of money works very well in the medium term, which we define to be close to four years; b) deviations from the inflation rate predicted by the quantity theory tend to disappear in the medium term; c) the burst in inflation that started in 2012 in the United States is a deviation from the inflation rate predicted by the quantity theory; and d) if the policy framework does not change, we expect inflation to be back close to its 2% target no later than 2025. [ABSTRACT FROM AUTHOR]

We construct recurrence plots (RPs) and conduct recurrence quantification analysis (RQA) to investigate the dynamic properties of the new Center for Financial Stability (CFS) Divisia monetary aggregates for the United States. In this study, we use the latest vintage of Divisia aggregates, maintained within CFS. We use monthly data, from January 1967 to December 2020, which is a sample period that includes the extreme economic events of the 2007–2009 global financial crisis. We then make comparisons between narrow and broad Divisia money measures and find evidence of a nonlinear but reserved possible chaotic explanation of their origin. The application of RPs to broad Divisia monetary aggregates encompasses an additional drift structure around the global financial crisis in 2008. Applying the moving window RQA to the growth rates of narrow and broad Divisia monetary aggregates, we identify periods of changes in data-generating processes and associate such changes to monetary policy regimes and financial innovations that occurred during those times. [ABSTRACT FROM AUTHOR]

This study aims to explain the relationship between price and financial stability in monetary policy designs that have developed since the 1990s and to empirically examine the relationship between price and financial stability in the monetary policy designs of the US. To this effect, the study examines the time-varying structure of the relationship between price and financial stability in the US, where monetary policies are designed to achieve price stability, full employment and moderate long-term interest rate targets using the TVP-SVAR model for the period 1993:12-2020:12. The results of the study demonstrate the presence of a reciprocal relationship within the scope of the new environment hypothesis, which varies over time between price and financial stability in the US over the study period. These results broadly suggest the necessity of redesigning monetary policies in the US based on the propositions of the new environment hypothesis and considering the varying structure of the relationships, symmetrical or asymmetrical, between monetary and financial stability variables over time. [ABSTRACT FROM AUTHOR]

The COVID-19 pandemic represented a logical Catch 22 scenario in the world of financial economics. The pandemic saw a sudden and unanticipated plunge in Money Velocity, Consumer Confidence, Employment, and Industrial Output. At the same time, due to fiscal and monetary stimulus measures in the form of quantitative easing and stimulus checks, the US saw an unanticipated rise in its Money Stock. With new waves of the virus and long-lasting labor shortages, a possible surplus liquidity scenario might arise. The United States faces a potentially high inflation rate scenario in such a case. This study draws insights from similar historical precedents and aims to model inflation as a function of macroeconomic variables: unemployment, money stock, money velocity, and industrial production. The study concludes that current percentage inflation already exceeds forecast estimates in the absence of a pandemic scenario through an OLS model. Recognizing transmission lags from exogenous variables to the target variable, an ARDL model is employed, which can incorporate differing leads/lags. Both the models predicted a lower inflation rate in the absence of Pandemic and Government Intervention than the actual inflation rate. This was deemed prima facie evidence that inflationary pressure from an increase in Money supply overpowered decreases in employment and money velocity. It was posited that when the economy reopens, this effect may further worsen due to the theoretically direct relationship between velocity, employment, and inflation. The study cautions runaway inflation, akin to Latin America's failed trials in Modern Monetary Theory type policies and many instances enshrined in history. [ABSTRACT FROM AUTHOR]

Since the run-up to the great recession, there has been a significant degree of heterogeneity across euro area countries both in terms of interest rates and in the composition of monetary assets. In order to account for the heterogeneity of monetary assets within and across member countries, we propose a Divisia monetary aggregate for the euro area. In line with earlier evidence obtained for the United States, our results from a panel probit analysis show that the divergence between the Divisia and the simple sum aggregate has a significant predictive content for recessions in euro area countries. [ABSTRACT FROM AUTHOR]

Objective - To explore the impacts of monetary and fiscal policies, the appropriateness of both policies and how the stock market is affected by their adoption and implementation in the United States (US). Hence, this study aims to determine the short and long run relationships between monetary and fiscal policies and stock market performance as well as establish potential factors and policies contributing to the highs and lows. Methodology/Technique - We use autoregressive distribution lag (ARDL) developed by Pesaran et al. (2001) to achieve the objective. In this study, annual time series data from the Federal Reserve, World Bank, and International Monetary Fund, from 1986 to 2017 pertaining to the American economy, was used. Findings - The results show that both policies play a significant role in the stock market. We find a significant positive effect of real gross domestic product (RGDP) and the interest rate on the US stock market in the long run and significant negative relationship effect of the consumer price index (CPI) and broad money on the US stock market both in the short run and long run. On the other hand, this study only could support the significant positive impact of tax revenue and significant negative impact of real effective exchange rate on the US stock market in the short run while in the long run are insignificant. Novelty - As the US stock market heavily depends on the Tax Revenue in the short run, any changes in TR can impact on the US stock market considerably. Thus, shareholders can benefit from these results when they look at macroeconomic data in order to enhance their investment strategy. [ABSTRACT FROM AUTHOR]

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In this paper, we analyse the demand for real money balances in the United States for the period 1990Q1–2017Q2 using a novel Divisia monetary aggregate developed by Barnett et al. (2013). Unlike simple-sum aggregates, Divisia aggregates take into account the different degrees of 'moneyness' of each monetary asset. In addition, Divisia aggregates have shown to be empirically superior to simple-sum aggregates, providing stable money demand functions for different periods and countries. In a first stage, we test for cointegration and estimate a long-run equilibrium model. In a second stage, we estimate an error correction model to study the short-run dynamics. Consistent with previous research, our findings show the existence of a stable money demand function, which suggests that monetary aggregates, when properly measured, can be useful tools in the conduct of monetary policy. [ABSTRACT FROM AUTHOR]

The objective of this paper is to analyze the impacts of monetary policy on determination and dynamics of coal prices in a closed economy setting in the USA. Economic theory tells us that if a change in macroeconomic policy has raised (lowered) the real interest rate above (below) its long-run equilibrium level, then coal prices should fall below (rise above) their long-run equilibrium path. Likewise, an unanticipated increase in the expected long-run rate of money growth increases the coal prices in the long-run equilibrium path and in turn the current coal price. Finally, when there is a change in the level of money supply, the price of coal initially overshoots its long-run equilibrium. Empirical time-series analysis confirms that coal prices react to monetary policy in the long run, i.e., monetary policy has a non-neutral impact on coal prices. Long-term adjustment is more pronounced for coal prices than for manufactured goods and services. In the short run, the degree of immediate adjustment or overshooting for coal prices in response to monetary policy shocks is, surprisingly, lesser than for manufactured goods and services. [ABSTRACT FROM AUTHOR]

The aim of this paper is to assess—on both theoretical and empirical grounds—the two main views regarding the money creation process, namely the endogenous and exogenous money approaches. After analysing the main issues and the related empirical literature, we will apply a vector autoregression model and a vector error‐correction model methodology to the United States for the period 1959–2017 to assess the causal relationship between a number of critical variables that are supposed to determine the money supply, that is, the monetary base, bank deposits, bank loans and the nominal level of economic activity. The empirical analysis supports several propositions related to the endogenous money approach. In particular, it shows that for the United States in the years 1959–2017 (a) bank loans determine bank deposits and (b) bank deposits in turn determine the monetary base. Our conclusion is that money supply is mainly determined endogenously by the lending activity of commercial banks and the nominal level of economic activity. [ABSTRACT FROM AUTHOR]

We construct a GFAVAR model with newly released global data from the Federal Reserve Bank of Dallas to investigate the drivers of global official/policy interest rate. We find that 66% of movement in global official/policy interest rates is attributed to changes in global monetary aggregates (23%), oil prices (19%), global output (16%) and global prices (8%). Global official/policy interest rates respond significantly to increases in global output, inflation and oil prices. Increases in global policy interest rates are associated with reductions in global prices and global output. The response in official/policy interest rate for the emerging countries is more to global inflation, for the advanced countries (excluding the U.S.) is more to global output, and for the U.S. is to both global output and inflation. [ABSTRACT FROM AUTHOR]

This paper applies the Markov-switching model to analyse the transition probabilities and generalized method of moments (GMM) with Newey–West heteroscedasticity and autocorrelation consistent covariance estimators (HAC) to examine the continuity of monetary policies in different countries when the U.S. and China change their monetary policies. Our results indicate that the euro area's monetary authority continues to increase/decrease their money supply to stimulate/depress the economy. In Japan, long-term economic recession motivated the Japanese government to maintain a loose money supply. The continuity of Korea's monetary policy in expansionary states lasts up to 5.1 years. Besides, the outcomes show the implementation of U.S. quantitative easing (QE), overnight reverse repurchase agreement (RRP), and Chinese RRP policies have significant spillover effects on other nations. Particularly, the effects on the euro area are the largest. Furthermore, although the monetary policies of China and the euro area seem to move in opposite directions, they are interdependent. [ABSTRACT FROM AUTHOR]

We investigate the demand for money and the degree of substitutability among monetary assets in the United States using the generalized Leontief and the Minflex Laurent (ML) models as suggested by Serletis and Shahmoradi (2007). In doing so, we merge the demand systems literature with the recent financial econometrics literature, relaxing the homoskedasticity assumption and instead assuming that the covariance matrix of the errors of flexible demand systems is time-varying. We also pay explicit attention to theoretical regularity, treating the curvature property as a maintained hypothesis. Our findings indicate that only the curvature constrained ML model with a Baba, Engle, Kraft, and Kroner (BEKK) specification for the conditional covariance matrix is able to generate inference consistent with theoretical regularity. [ABSTRACT FROM AUTHOR]

Cooley arid LeRoy (1981) have argued that if random shifts in money demand are at least partially accommodated by the Federal Reserve, there is no obvious way to identify the money demand function for the purposes of estimation. We argue that this is not correct, and that identification is in fuel straightforward, provided that the monetary authority reacts to at least one variable not in the money demand function. If the monetary authority looks at "everything" in making its policy, this condition is likely to be fulfilled. [ABSTRACT FROM AUTHOR]

Sterilized foreign exchange market intervention may affect the exchange rate if it signals future monetary policy actions. Signaling will be effective if the central bank backs up intervention with predictable changes in the stance of monetary policy and, in turn, affects current expectations. We investigate whether intervention operations in the United States are related to changes in expectations over the stance of future monetary policy, where expectations are proxied by federal funds futures rates. This relatively new futures market instrument has proved to be an efficient and unbiased predictor of the future spot federal funds rate. Estimates obtained from a GARCH time-series model over the 1989-93 period using daily data do not support the signaling hypothesis: dollar-support intervention is not related to a rise in expected future short-term interest rates (monetary tightening). However, intervention appears to significantly increase the conditional variance of federal funds futures rates, suggesting that it adds considerable noise to the market and possibly increasing the degree of uncertainty over the future course of monetary policy. [ABSTRACT FROM AUTHOR]

We test the long-run neutrality of money proposition for the United States paying attention to the integration and cointegration properties of the variables. We use quarterly data (over the period from 1967:1 to 2014:1) and the new Center for Financial Stability Divisia monetary aggregates. We make a comparison among the narrower monetary aggregates, M1, M2M, MZM, M2, and ALL, and the broad monetary aggregates, M4+, M4-, and M3, and show that there is no statistically significant evidence against long-run monetary neutrality, consistent with both monetarist and Keynesian macroeconomic theory. [ABSTRACT FROM AUTHOR]

The goal of this paper is to observe the interregional correlations in the housing market at three price tiers (low, middle, and high) and examine differences in ripple effects at each housing price tier and the factors that influence these effects in each tier. Ripple effects in housing prices of 10 major metropolitan areas in the USA between January 1993 and March 2016 are examined, and this study finds that intercity ripple effects are larger in lower-cost houses. In addition, ripple effects continue to increase after February 2015 only for the low-tier sample. This indicates that intercity systemic risk is currently highest for low-tier houses. Further estimations reveal that money supply is the most crucial variable for determining the level of systemic risk. However, because high-price-tier properties are prone to disposition effects when house prices fall, ripple effects tend to drop sharply during housing market downturns, except for during the subprime mortgage crisis. [ABSTRACT FROM AUTHOR]

The relationship between money growth and inflation is a topic of debate among macroeconomists. This paper contributes to the empirical literature on the money‐inflation pass‐through using a Nonlinear Auto‐Regressive Distributed Lag model (NARDL) for three countries (the U.S., U.K. and Japan) over an estimation period spanning 1950Q1 to 2014Q4. This methodology allows for empirical tests of short‐ and long‐run asymmetric responses of inflation to both positive and negative shocks affecting money growth of three monetary aggregates (M1, M2, M0). The results reveal that inflation responds asymmetrically to monetary shocks in the long‐run for all three countries. Robustness tests are also undertaken by carrying out the Hatemi‐J (Empirical Economics, Vol. 43 (2012), pp. 447–456) causality test and splitting the sample period into two, before and after the financial crisis. The findings indicate the existence of a relation between money growth and inflation in the post‐crisis period only in the case of the U.K. When we use different break points, we find that the symmetric relationship more likely occurs in the post‐crisis period. [ABSTRACT FROM AUTHOR]

Deteriorating economic conditions in late 2008 led the Federal Reserve to lower the target federal funds rate to near zero, inject liquidity through novel facilities, and engage in large‐scale asset purchases. The combination of conventional and unconventional policy measures prevents using the effective federal funds rate to assess the effects of monetary policy beyond 2008. We employ a broad monetary aggregate to elicit the effects of monetary policy shocks both before and after 2008. Our estimates align well with major changes in the Fed's asset purchase programs and yield responses that are free from price, output, and liquidity puzzles that plague other approaches. [ABSTRACT FROM AUTHOR]

We use a novel retail panel with detailed transaction records to study the effect of the Supplemental Nutrition Assistance Program (SNAP) on household spending. We use administrative data to motivate three approaches to causal inference. The marginal propensity to consume SNAP-eligible food (MPCF) out of SNAP benefits is 0.5 to 0.6. The MPCF out of cash is much smaller. These patterns obtain even for households for whom SNAP benefits are economically equivalent to cash because their benefits are below their food spending. Using a semiparametric framework, we reject the hypothesis that households respect the fungibility of money. A model with mental accounting can match the facts. (JEL D12, H75, I12, I18, I38) [ABSTRACT FROM AUTHOR]

Abstract: We evaluate the policy implications of measuring the welfare cost of inflation accounting for instabilities in the long‐run money demand for the United States over the period 1900–2013. We extend the analysis and reassess the results reported in Lucas (2000) and Ireland (2009), also considering the recent theoretical contributions of Lucas and Nicolini (2015) and Berentsen, Huber, and Marchesiani (2015). Breaks in the long‐run money demand give rise to regime‐dependent welfare cost estimates. We find that the welfare cost is about 0.1% of annual income over 1976–2013, as compared to 0.8% over 1945–75. Overall, these values are substantially lower than those reported in the literature. [ABSTRACT FROM AUTHOR]

The article presents commentary and extensions on the article "Interest-Bearing Currency: Evidence from the Civil War Experience," by James Gherity published in the February 193 issue, discussing economic conditions during the American Civil War which have large implications against the legal restrictions theory of money demand. The author challenges Gherity's assertion that transaction costs could be eliminated through the use of interest-bearing notes. Research revisions of the selected data set are also provided, and alternative explanations are offered for the monetary behavior.

The article refers to the macroeconomic objectives of the U.S. Federal Reserve Board and focuses on corrective actions to errant money growth during the time period of 1975.1 to 1987.8--which involves three monetary policy regimes. The Federal Reserve Board's announced actions and short-run money growth targets are assessed in a reaction function model which considers the dependent variables of the federal funds rate, borrowed reserves, and nonborrowed reserves. The equation includes terms for the producer price index and the industrial production index. Results suggest that a "policy anticipation effect" is related to the "money supply announcement puzzle." Expected inflation, reserve requirement, expected liquidity effect, and real activity effects are mentioned.

The article discusses a flexible demand system for the demand for money in the United States. The article presents a general theoretical model, which elaborates on the specification of monetary services aggregator functions, and outlines the theory of consistent multistage optimization. The article also focuses on the specification of a dynamic demand system, which aside from the dynamics is based on the indirect translog aggregator function. The article cites the work of Anderson and Blundell, who developed an unrestricted dynamic formulation to accommodate short-run disequilibrium situations, by including lagged endogenous and exogenous variables as regressors.

The article focuses on the use of credit aggregates as part of the monetary policy process in the United States. The article examines why the U.S. Federal Open Market Committee (FOMC) adopted total credit in 1983. One reason was because financial innovations over the prior decade had decreased the information content of bank credit for monetary policy. The other reason for the adoption was the usefulness of traditional monetary aggregates was questioned due to velocity shifts in the early 1980s. The article analyzes the breakdown of the total credit and gross national product relationship. A discussion of the role that credit aggregates can play in the monetary policy process is also presented.

The article examines the reactions of money and foreign exchange markets relative to money supply announcement by the Federal Reserve in the U.S., as of May 1, 1990. In the article predictions are made concerning the exchange rate and interest rate reactions induced by monetary innovations. The article makes a consideration to the role that this model may play in explaining the stylized facts in the money supply announcements literature. It is reported that evidence has revealed that domestic currency tends to appreciate in response to positive surprises to the market. However, there is no indication that non-U.S. short term interest rates are affected by domestic money surprises.

The article examines the rise in interest rates in response to positive innovations in the money supply during the early and mid-1980s in the United States. One of the major hypothesis developed regarding the issue is the liquidity premium hypothesis, which holds that the market expects that the Federal Reserve will respond to a positive innovation in the money supply by raising reserve pressures and thereby raising interest rates. The expected inflation hypothesis is viewed as the alternative to the liquid premium hypothesis. The expected inflation hypothesis holds that the market expects the Federal Reserve will accommodate the excess money growth and this will result in the increase of the market's expectations of future inflation, which will result in raised interest rates.

This article presents information on the evaluation of financial and non-financial forecast errors by the U.S. Federal Open Market Committee (FOMC). The members of the FOMC were required to make short-term forecasts of one month that are here evaluated, particularly the projections for nominal gross national product (GNP), real GNP, the GNP deflator, and net exports. The article concludes that the predictions made by the FOMC for the stock market were poor while the non-financial forecasts showed autocorrelation and bias. This poor showing may be the result of insufficient attention being paid to foreign markets.

The article discusses looks at the monetary policy signals that have come from the U.S. Federal Reserve and the influence that the president and Congress have on the Fed's policy decisions. It is noted that few scholars believe that the Fed makes decisions independently of outside sources and support for this idea is drawn from the political business cycle (PBC) theory and reaction function studies that trace how monetary policies have changed in conjunction with different presidential administrations. The article looked particularly at the period between September 1979 to December 1984 and changes that occurred to the money supply during that time. The article concludes that based on its monetary policy index that the Fed is not entirely autonomous and is subject to influence.

The article discusses estimated reduced forms and interest rates and whether or not these respond to changes in monetary policy leaders and might be the cause behind unusual interest rate behavior. The argument of this article is that monetary policies have changed significantly to correlate with changes in leadership at the U.S. Federal Reserve. The article concludes that by incorporating the values of U.S. Federal Reserve chairmen, a reliable parameter for analyzing shifts in interest rates is created.

The article presents research extensions into previous work outlining theories of unexpected money supply change impacts on real variables through the rational expectations model. A review of the preceding studies is given, citing limitations needing to be addressed. Particular attention is given regarding possible endogeneity within the money supply. Elements used in this study include the utilization of the base money supply for aggregate data, a sample period between 1920-1983, and the use of unemployment as a real variable to measure against.

The article presents the author's comments on the article "Consequences and Criticism of Monetary Targeting," by Bennett T. McCallum. In the article the monetary targeting issues have been made more complex by interpretations of actual experiences with such a monetary policy. The author discusses why the Federal Reserve modified its policy in October 1979. Operational tests of the significance of these changes in monetary targeting by the Federal Reserve can be implemented by studying charts of monthly or weekly levels and rates of growth of the monetary and reserve aggregates.

The article investigates the effects of money supply announcements on the U.S. financial markets. Provided is the analysis of the correlations between the money supply and nominal interest rates as well as evidence of exchange market inefficiency. The article evaluates the impact of money supply announcements on bilateral exchange rates. Additional topics include a model that showcases the simple interest rate parity condition, and a table featuring eurodollar rates over a span of 30, 90, and 180 days.

The article focuses on how weekly changes in the money supply impacts the financial markets. By studying the market reaction to weekly monetary announcements, data on how the economy reacts to these changes can be analyzed. This paper covers the unexpected weekly updates in the money supply minus the expected changes, where expected changes are taken from market survey data. The changes in the interest rates of various terms to maturity are used to evaluate the impact of innovation on financial markets.

The article presents empirical research on the interrelationship of domestic money supplies during the floating rate period. Particular attention is given to the hypothesis that monetary growth in the U.S. influences the rate of foreign countries' domestic money growth. The effects of U.S. intervention activity on that influence is evaluated. Provided is a model of exchange rate effects on monetary growth as a result of interventions in central banking, as well as a discussion on why three incentives for exchange rate management are possible reasons for a specific central bank policy.

This article presents a comment on the article "Money Supply Control and Lagged Reserve Accounting." The author examines the ability of the U.S. Federal Reserve to control the money supply under lagged reserve accounting. The author examines how manipulation of the interest rate can impact the demand for money and presents a model that is designed to test how effectively this method of control works. The author's findings suggest that authorities can control the money stock by manipulating that base control.

This article presents information on the impact that interest rates have on the demand for currency. The authors support pervious research that argued that any increase in the interest rate that is expected to last for a significant period of time will impact investments and lower the demand for money. The author extend this research by empirically examining the impact that interest rates increases have on the demand for currency. They discuss some of the policy implications of their findings and suggest how the U.S. Federal Reserve can counteract the impact of a decreasing demand for money.

The article provides information about the economic condition of Latin America from 1950 to 1979. The article states that monetary growth rates during that time display a pattern of low and stable in some countries and high and unstable in others. The author states that this examination suggests that countries that peg to the U.S. dollar experience low and stable inflation rates. He explains that this also represents a decision not to inflate greater than the U.S. The article provides a model of an optimum currency peg and presents several equations to illustrate the study.

The article focuses on the criteria for targeting variables using monetary policy in the United States. The author states that there has emerged a growing awareness of the fact that price expectations and cost trends have to be attached to a consistent path of demand policy. The article discusses the exclusion of real variables from the candidates and asks if reserve targeting would raise similar problems. The author compares movements in the base multiplier and in base velocity with movements in velocity. Several equations are provided to help illustrate the study.

The article focuses on the role of the money stock in the conduct of Federal Reserve monetary policy in the United States. The author states that there exists confusion in the analytical approach to Federal Reserve policy. The article discusses what the author believes are the three key issues of confusion including an inadequate analysis of the operating procedures the Federal Reserve uses to implement its policy from one short-run period to the next. The author explains that pragmatic monetarists encourage the Federal Reserve to achieve a moving average level of the money stock which tracks a predetermined target path accurately.

The article comments on the article "Federal Reserve Control of the Money Stock," by Ralph C. Bryant, and published in the November 2, 1982 issue of the "Journal of Money, Credit, and Banking." The article also provides an analysis of the operating procedures of the U.S. Federal Reserve Board and a discussion of the role of political arrangements in raising the cost of slowing inflation. The author examines the effect of transitory changes in the money market. The author states that his main issue with Bryant's article is that it fails to discuss key problems that divide the Federal Reserve and its critics.

The article focuses on the behavior of the money supply in 1980 after the U.S. Federal Reserve System instituted a monetary control policy that utilized nonborrowed-reserve operating targets and lagged-reserve accounting. It presents a microeconomic analysis with bank credit and bank reserve markets. It states that the U.S. Federal Open Market Committee specifies an intrayearly target for the money supply's growth rate and also specifies an initial target for borrowed reserves as an average to be met during the intermeeting interval.

The article focuses on an examination of monetary accommodation of supply shocks under rational expectations. It states that in the short run there is an exploitable inflation-employment trade-off where unanticipated shocks from the Organization of Petroleum Exporting Countries (OPEC) are concerned, while conclusions depend more on model specifics where anticipated OPEC shocks are concerned. It mentions that if the U.S. alters its money supply as a response to an increased nominal price in oil, price levels in other countries as measured by their own currencies would not be unaffected by the money supply of the U.S., but that the exchange value of the dollar would depreciate or appreciate depending on if the money stock in the U.S. fell or rose.

The article focuses on a dynamic analysis of the impact fiscal policy has on the money supply. It states that assumptions about the U.S. Federal Reserve's behavior influences variances in the magnitude of dynamic multipliers. It mentions that failures in modeling the Federal Reserve's response to fiscal policy can result in an underestimation of the effect that fiscal actions have on money supply, and provides empirical support to the argument that if policymakers react systematically to the economy's state, the model multipliers will be biased unless this reaction is explicitly accounted for in the model.

The article examines the use of the U.S. Federal Reserve System of money supply in 1970s. The author believes that if the Federal Open Market Committee of the Federal Reserve System (FOMC) viewed the money supply as its primary intermediate target of policy, it would have enacted operating procedures to ensure control of the money supply. The three characteristics required of these operating procedures are reviewed. The author discusses both long-run and short-run money supply targets. The FOMC's decision in choosing operating procedures is rationalized.

The article focuses on a study on the definition and estimation of monetary aggregates conducted by a U.S. Federal Reserve System advisory committee. Aggregates proposed by the board staff are described and analyzed, and an extended analysis of transitory and seasonal variations in the monetary statistics is presented. The author also considers whether nonbank repurchase agreements should be included in money measures. The two necessary operations in the construction of a monetary aggregate are discussed. Elasticities of substitution among potential components must first be estimated to include the individual aggregate items. Second, the chosen components must be added together, typically by summing them.