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Topics in Macroeconomics Volume 6, Issue 2 2006 Article 1 Counter-Cyclical and Counter-Inflation Monetary Policy Rules and Comovement Properties of Money Growth Soyoung Kim∗ ∗Korea University, Counter-Cyclical and Counter-Inflation Monetary Policy Rules and Comovement Properties of Money Growth∗ Soyoung Kim Abstract This paper shows that counter-cyclical and counter-inflation monetary policy rules are crucial for monetary business cycle models to match the observed negative (or weak) correlation of the growth rate of money and output

.g., call rate in Korea, federal fund rate in the United States) is prescribed that a central bank should maintain. Though such concentration on the determination of the short-term inter- est rate is relatively easy to implement in practice, it only sequentially cross- checks the level of inflation and GDP gap with the current short-term in- terest rate. It neglects how the term-structure of interest rates as a whole reacts to the adjustment of the short-term interest rates, which might ex- 91 3 Money Growth and Interest Rates Seok-Kyun Hur Seok-Kyun Hur is a research

Studies in Nonlinear Dynamics & Econometrics Volume 6, Issue 3 2002 Article 3 Common Persistent Factors in Inflation and Excess Nominal Money Growth and a New Measure of Core Inflation Claudio Morana∗ ∗University of Piemonte Orientale (Novara), All rights reserved. No part of this publica- tion may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permis- sion of the publisher, bepress, which has been given certain exclusive rights by

Die Auswirkungen der Geldmenge und des Kreditvolumens auf die Immobilienpreise – Ein ARDL-Ansatz für Deutschland Money, Credit and House Prices – An ARDL-Approach for Germany Von Ansgar Belke, Essen* JEL E44, E52, R21, R31 Autoregressive distributed lag model, credit growth, financial crisis, money growth, house prices, cointegration. Received: 14.07.2008 Revision received: 09.11.2009 Accepted: 08.12.2009 Summary The current financial crisis is often said to be caused by excessive liquidity and distorted in- centives in the US subprime real estate sector. Taking

growth and focus instead on the trend rate of monetary expansion over the medium term. JEL classification: E43, E44, E52, E58. Keywords: High-frequency data; macroeconomic announcements; money growth. 1. INTRODUCTION The monetary policy strategy of the European Central Bank (ECB) assigns a prominent role to money. This strategy differentiates monetary analysis from economic analysis, and refers to each of them as a ‘pillar’ for the overall assessment of risks to price stability. However, many observers have failed to detect any relationship between the growth rate of M

provide any rationale for either a Bundesbank-style money-growth target or a Eurosystem- style money-growth indicator. 1. INTRODUCTION The so-called P model (see Hallman et al., 1991) is often used (or at least referred to) in discussions of monetary targeting (for instance, in Jahnke and Reimers, 1995; Neumann, 1997; ToÈdter and Reimers, 1994; ToÈdter and Ziebarth, 1997; von Hagen, 1995). This may give the impression that the P model provides some rationale for money-growth targeting, especially since the P model seems to be part of the Bundesbank's view of the

providing a theory on rational bubbles in a monetary economy. This study explores rational bubbles in a monetary economy using an endogenous growth model with status seeking. Rational bubbles may arise when the money growth rate is higher than some threshold level. Moreover, as Zhou (2016) suggests, we still need status seeking to be strong enough to guarantee the existence of rational bubbles. Please refer to Miao (2014) for other methods to introduce bubbles into a dynamic stochastic general equilibrium model. This finding can be explained as follows. Sufficiently

the long-run levels of employment and output growth in a Schumpeterian growth model with quality improving innovations under nominal price rigidity. At the unique REE steady state equilibrium, both employment and growth are hump-shaped functions of money growth peaking at positive inflation rates. KEYWORDS: inflation, price rigidity, endogenous growth, employment ∗We would like to thank David Andolfatto and an anonymous referee for helpful comments. 1 Introduction This paper analyzes the e¤ects of in‡ation on long-run economic development in a framework with

1 Introduction Price-level stability is among the most crucial policy objectives in any country. In the open economy context where there are multiple monetary policymakers, it is natural to ask how monetary policies can be internationally coordinated to achieve this objective. Bencivenga, Huybens, and Smith (2002) seek to answer this question by investigating three policy regimes: that is, three combinations of monetary policy rules of the two countries – (i) constant money growth rates, (ii) fixed exchange rates and (iii) price-level targeting – and find that

Discussion Abstract. In this comment, we answer the question posed in Svensson's (2000) paper `Does the P* Model Provide any Rationale for Monetary Targeting?' ± in contrast to him ± in the affirmative. We argue that a strategy of monetary targeting can be rationalized within the P* framework. Furthermore, we demonstrate that money growth targeting is a special form of inflation forecast targeting based on a `limited' information set. In contrast to `full information' inflation forecast targeting, monetary growth targeting is likely to be more robust under