NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Monetary Information and Macroeconomic Fluctuations

John F. Boschen, Herschel I. Grossman

NBER Working Paper No. 498 (Also Reprint No. r0533)
Issued in July 1980
NBER Program(s):   EFG

This paper introduces contemporaneously available monetary data into an "equilibrium" model that combines rational expectations, market clearing, and incomplete information about monetary disturbances. Data on the current money stock involve a preliminary estimate that is subject to a subsequent process of gradual revision. The model implies the testable hypothesis that aggregate output and employment are uncorrelated with the contemporaneous measure of money growth implied by the difference between the currently available estimates of current and past money shocks. Rejection of this hypothesis provides strong evidence again at the equilibriums approach to modeling the relation between monetary disturbances and macro-economic fluctuations.

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Document Object Identifier (DOI): 10.3386/w0498

Published: Boschen, John F. and Herschel I. Grossman. "Monetary Information and Macroeconomic Fluctuations." Modern Macroeconomic Theory, edited by J. P. Fitonssi, New Jersey: Barnes and Noble Books, (1983), pp. 173-184.

 
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