Money, real interest rates, and output
Subtitle: a reinterpretation of postwar U.S. data
By: Robert B. Litterman and Laurence M. Weiss.
Contributors: Weiss, Laurence M.
Series: Federal Reserve Bank of Minneapolis, Research Department staff report -- 89; Staff report (Federal Reserve Bank of Minneapolis. Research Dept. : Online) -- 89.
Publisher: Federal Reserve Bank of Minneapolis
Published: 1984
Place of publication: [Minneapolis, Minn.]
Language: eng
Format: Electronic resource
Subjects: Money -- United States -- Mathematical models.; Interest rates -- United States -- Mathematical models.; United States -- Economic conditions -- 1945- -- Mathematical models.
Description: "This paper reexamines U.S.  postwar data to investigate if the observed comovements between money, interest rates, inflation, and output are compatible with the money to real interest to output links suggested by existing monetary theories of the business cycle, which include both Keynesian and equilibrium models.  We find these theories are incompatible with the data, and in light of these results, we propose an alternative structural model which can account for the major dynamic interactions among the variables.  This model has two central features: (i) output is unaffected by the money supply; and (ii) the money supply process is influenced by policies designed to achieve short-run price stability"--Federal Reserve Bank of Minneapolis web site.
Notes: Title from PDF file as viewed on 11/9/2007.

Includes bibliographical references.

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