NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Own-Price of Money and a New Channel of Monetary Transmission

Michael T. Belongia, Peter N. Ireland

NBER Working Paper No. 9341
Issued in November 2002
NBER Program(s):   ME

Traditionally, the effects of monetary policy actions on output are thought to be transmitted via monetary or credit channels. Real business cycle theory, by contrast, highlights the role of real price changes as a source of revisions in spending and production decisions. Motivated by the desire to focus on the effects of price changes in the monetary transmission mechanism, this paper incorporates a direct measure of the real own-price of money into an estimated vector autoregression and a calibrated real business cycle model. Consistent with this new view of the monetary transmission mechanism, both approaches reveal that movements in the own-price of money are strongly related to movements in output.

download in pdf format
   (265 K)

email paper

This paper is available as PDF (265 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w9341

Published: Belongia, Michael T. and Peter N. Ireland. "The Own-Price Of Money and The Channels Of Monetary Transmission," Journal of Money, Credit and Banking, 2006, v38(2,Mar), 429-445.

Users who downloaded this paper also downloaded these:
Mishkin w5464 The Channels of Monetary Transmission: Lessons for Monetary Policy
Mishkin w13518 Housing and the Monetary Transmission Mechanism
Boivin, Kiley, and Mishkin w15879 How Has the Monetary Transmission Mechanism Evolved Over Time?
Mishkin w8617 The Transmission Mechanism and the Role of Asset Prices in Monetary Policy
Ramey w4285 How Important is the Credit Channel in the Transmission of Monetary Policy?
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us