Optimal Control of the Money Supply
Working Paper 0912
DOI 10.3386/w0912
Issue Date
Using optimal control theory and a vector autoregressive representation of the relationship between money and interest rates, one can derive a feedback control procedure which defines the best possible tradeoff between interest rate volatility and money supply fluctuations and which could be used to reduce both from their current levels.
-
-
Copy CitationRobert B. Litterman, "Optimal Control of the Money Supply," NBER Working Paper 0912 (1982), https://doi.org/10.3386/w0912.
Published Versions
Quarterly Review, Federal Reserve Bank of Minneapolis, Fall 1982, 6(3): 1-9. citation courtesy of