An Approach to Teaching Monetary Policy Since Deregulation
Coombes, Trevor (2008) An Approach to Teaching Monetary Policy Since Deregulation. Economic Papers, 27 (4). pp. 355-363. ISSN 0812-0439Full text for this resource is not available from the Research Repository.
Since the full institution of deregulation the mechanics of how monetary policy operates has fundamentally changed. No longer can a change in stance be shown as shijis in the exogenously-determined money supply function in the Keynesian interest @amework, because in competitive banking systems the money supply process is fully endogenous. Money endogeneity correctly suggests a reinterpretation of the vertical money supply function. A vertical money supply function drawn against bond yields does not automatically mean exogeneity. Monetary policy is best shown as shijis in the money demand function.
|Uncontrolled Keywords:||ResPubID15250. free banking, competitive banks, deregulation, clearinghouse, adverse balances, monetary policy, endogenous money|
|Subjects:||Faculty/School/Research Centre/Department > School of Economics and Finance
FOR Classification > 1401 Economic Theory
SEO Classification > 9101 Macroeconomics
|Date Deposited:||07 Sep 2011 04:17|
|Last Modified:||07 Sep 2011 04:17|
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