TY  - JOUR
AU  - McCallum,Bennett T.
TI  - Monetary Policy Analysis in Models Without Money
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8174
PY  - 2001
Y2  - March 2001
UR  - http://www.nber.org/papers/w8174
L1  - http://www.nber.org/papers/w8174.pdf
N1  - Author contact info:
Bennett T. McCallum
Tepper School of Business, Posner 256
Carnegie Mellon University
Pittsburgh, PA 15213
Tel: 412/268-2347
Fax: 412/268-6830
E-Mail: bm05@andrew.cmu.edu
AB  - The following arguments are developed: (i) models without monetary aggregates do not imply that inflation is a non-monetary phenomenon and are not necessarily non-monetary models; (ii) theoretical considerations suggest that such models are misspecified, but the quantitative significance of this misspecification is very small; (iii) some prominent arguments based on  indeterminacy' findings are of dubious merit: there are reasons for believing that findings of solution multiplicity are theoretical curiosities that have no real world significance; (iv) monetary policy rules that violate the Taylor principle, by contrast, possess another characteristic the absence of E-stability that suggests undesirable behavior in practice.
ER  -