TY  - JOUR
AU  - Ireland,Peter N.
TI  - Money's Role in the Monetary Business Cycle
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8115
PY  - 2001
Y2  - February 2001
UR  - http://www.nber.org/papers/w8115
L1  - http://www.nber.org/papers/w8115.pdf
N1  - Author contact info:
Peter N. Ireland
Boston College
Department of Economics
140 Commonwealth Ave.
Chestnut Hill, MA 02467-3859
Tel: 617/552-3687
Fax: 617/552-2308
E-Mail: irelandp@bc.edu
AB  - A small, structural model of the monetary business cycle implies that real money balances enter into a correctly-specified, forward-looking IS curve if and only if they enter into a correctly-specified, forward-looking Phillips curve.  The model also implies that empirical measures of real balances must be adjusted for shifts in money demand to accurately isolate and quantify the dynamic effects of money on output and inflation. Maximum likelihood estimates of the model's parameters take both of these considerations into account, but still suggest that money plays a minimal role in the monetary business cycle.
ER  -