Real Interest Rate, Credit Markets, and Economic Stabilization / Paul Jenkins, Carl E. Walsh.

Format:

Book

Author/Creator:

Jenkins, Paul (Paul C.)

Contributor:

Walsh, Carl E.

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w1575.

NBER working paper series no. w1575

Language:

English

Subjects (All):

Capital market--Mathematical models.

Capital market.

Interest rates--Mathematical models.

Interest rates.

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1985.

Cambridge : National Bureau of Economic Research, 1985.

Summary:

The role of a real interest rate and a credit aggregate as intermediate monetary policy targets are investigated under the assumption of rational expectations. The analysis expands a standard aggregate model to include a credit market and a market determined interest rate on bank deposits. This allows the implications for output stabilization of real interest rate policy to be examined for a wider variety of shocks than normally considered in the literature, as well as allowing a credit aggregate policy to be studied.

Notes:

March 1985.

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