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Journal Article
How erratic is money growth?
Journal Article
Rules and discretion in monetary policy
Journal Article
Velocity and inflation expectations, 1922-1983
Working Paper
Velocity and the variability of money growth: evidence from Granger- causality tests reevaluated
Hall and Nobel (1987) use the Granger-causality test to show that volatility influences velocity, leading them to conclude that the recent decline in the velocity of Ml is due to increased volatility of money growth which is alleged to be caused by the Federal Reserve's new operating procedures. This note shows that such a conclusion is unwarranted, because the causality result reported in their paper is not robust. When the test is implemented either using first differences of the volatility variable or using the volatility and velocity variables that are based on the broad definition of ...
Journal Article
Does interest rate volatility affect money demand?
Journal Article
Solving the 1980s' velocity puzzle: a progress report
Working Paper
The usefulness of P* measures for Japan and Germany
This paper develops measures of long-run equilibrium price levels (P*) for Japan and Germany following the approach used for the United States by Hallman, Porter, and Small [1991]. Under this approach, P* is detemined by potential output, equilibrium velocity, and the amount of money in the economy. Constructing P* for these foreign countries is more complicated than in the U.S. case because the velocities of the broad monetary aggregates (M2+CDs in Japan and M3 in Germany) exhibit clear downward trends in contrast to the relatively flat trend of U.S. M2 velocity. We utilize dynamic ...
Journal Article
Why does velocity matter?
Working Paper
The effects of disinflationary policies on monetary velocity
A study of the effect of disinflation policies on monetary velocity, which shows a systematic relation between unexpected changes in the money-income relationship and changes in the trends of inflation rates, and which concludes that the failure to commit to a stable price policy tends to destabilize the economy.
Journal Article
Is M1 ruined?--part I