Working Paper

Estimates of the link between variable money growth and GNP: a supplement to Mascaro and Meltzer


Abstract: Mascaro and Meltzer have implied, but not tested, that increased uncertainty about monetary policy will reduce real income. This proposition is tested directly by adding a. Kalman filter estimate of monetary uncertainty to a St. Louis-type GNP equation. The results indicate that -increased uncertainty about monetary policy has permanent negative effects on both the level and growth rate of GNP.

Status: Published in Review of Economics and Statistics, August 1986, 68(3), pp. 539-42

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Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Working Papers

Publication Date: 1984

Number: 1984-008