TY  - JOUR
AU  - Jenkins,Paul
AU  - Walsh,Carl E.
TI  - Real Interest Rate, Credit Markets, and Economic Stabilization
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1575
PY  - 1988
Y2  - March 1988
UR  - http://www.nber.org/papers/w1575
L1  - http://www.nber.org/papers/w1575.pdf
N1  - Author contact info:
Carl Walsh
Department of Economics
E2 Building
University of California
Santa Cruz, CA   95064
Tel: 531-459-4082
E-Mail: walshc@ucsc.edu
AB  - 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.
ER  -