Money Supply - Definition
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Money Supply " Rational" expectations, the optimal monetary instrument, and the optimalmoney supplyrule, Sargent, T. J., & Wallace, N. (1975).Journal of political economy,83(2), 241-254. This study explores monetary policies in an ad hoc macroeconomic model in which publics expectations about prices are rational. This paper studies whether pegging the interest rate or pegging the money supply period by period minimizes an ad hoc quadratic loss function. Long-term contracts, rational expectations, and the optimalmoney supplyrule, Fischer, S. (1977).journal of Political Economy,85(1), 191-205. The paper is concerned with the role of monetary policy and argues that activist monetary policy can affect the behavior of real output, rational expectations notwithstanding. Nominal price rigidity,money supplyendogeneity, and business cycles, Yun, T. (1996).Journal of monetary Economics,37(2), 345-370. This paper investigates the ability of nominal price rigidity to explain the co-movement of inflation with the cyclical component of output observed in the post-war U.S. data. Asymmetric effects of positive and negativemoney-supplyshocks, Cover, J. P. (1992). The Quarterly Journal of Economics,107(4), 1261-1282. This paper examines whether positive and negative money-supply shocks have symmetric effects on output. The results are consistent with the hypothesis that positive money-supply shocks do not have an effect on output, while negative money-supply shocks do have an effect on output. The results reported in this paper imply that the Fed could increase the growth rate of real output by reducing the standard deviation of unexpected changes in the money supply. The demand for currency relative to the totalmoney supply, Cagan, P. (1958). Journal of political economy,66(4), 303-328. This paper analyses the public demand for currency as a fraction of the total money supply, along with the implications, benefits, and possible drawbacks if this demand were to be met. It also analyses economists interest in this demand, as well as that of bankers. Two theories ofmoney supplyendogeneity: some empirical evidence, Pollin, R. (1991). Journal of Post Keynesian Economics,13(3), 366-396. This paper analyses two distinct theries of money supply endogenity of the Post-Keynesian literature. It analyses the similarities and differences between both literatures. The paper examines the two starting points of each theory, and finds them to have the same view. It also goes further to analyse their differences, i.e., at the point of looking for reserves later, according to Alan Holmes. Themoney supplyannouncements puzzle: Review and interpretation, Cornell, B. (1983). The American Economic Review,73(4), 644-657. The role ofmoney supplyshocks in the short-run demand for money, Carr, J., & Darby, M. R. (1981).Journal of monetary economics,8(2), 183-199. Previous models of the demand for money are either inconsistent with contemporaneous adjustment of the price level to expected changes in the nominal money supply or imply implausible fluctuations in interest rates in response to unexpected changes in the nominal money supply. This paper proposes a shock-absorber model of money demand in which money supply shocks affect the synchronization of purchases and sales of assets and so engender a temporary desire to hold more or less money than would otherwise be the case. The supply of money and common stock prices, Homa, K. E., & Jaffee, D. M. (1971). The Journal of Finance,26(5), 1045-1066. Market response to the weeklymoney supplyannouncements in the 1970s, Urich, T., & Wachtel, P. (1981). The Journal of Finance,36(5), 1063-1072. This study examines hypothesis that the weekly announcement of the money supply affects interest rates. The resulting effect is interpreted as a policy anticipation effect. Stock returns,money supplyand the direction of causality, Rogalski, R. J., & Vinso, J. D. (1977). The Journal of finance,32(4), 1017-1030. The endogenousmoney supply: consensus and disagreement, Palley, T. I. (1991). Journal of Post Keynesian Economics,13(3), 397-403. Money supplyannouncements, interest rates, and foreign exchange, Cornell, B. (1982). Journal of International Money and Finance,1, 201-208. This paper presents a test of the joint hypothesis that money supply announcements affect the real interest rate and that changes in the real interest rate affect the exchange rate in the short run. The test results are consistent with the joint hypothesis.