NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Putting 'M' back in Monetary Policy

Eric M. Leeper, Jennifer E. Roush

NBER Working Paper No. 9552
Issued in March 2003
NBER Program(s):   EFG   ME

Money demand and the stock of money have all but disappeared from monetary policy analyses. This paper is an empirical contribution to the debate over the role of money in monetary policy analysis. The paper models supply and demand interactions in the money market and finds evidence of an essential role for money in the transmission of policy. Across sub-samples, it finds evidence consistent with the following inferences: (1) the money stock and the interest rate jointly transmit monetary policy; (2) for a given exogenous change in the nominal interest rate, the estimated impact of policy on economic activity increases monotonically with the response of the money supply; (3) the path of the real rate is not sufficient for determining policy impacts.

download in pdf format
   (933 K)

email paper

This paper is available as PDF (933 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w9552

Published:

  • Leeper, Eric M. and Jennifer E. Roush. "Putting 'M' Back in Monetary Policy," Journal of Money, Credit and Banking 35(6): 1217-1256. Dec. 2003
  • International Finance Discussion Papers, number 761. Board of Governors of the Federal Reserve System.
  • Eric M. Leeper & Jennifer E. Roush, 2003. "Putting "M" back in monetary policy," Proceedings, Federal Reserve Bank of Cleveland, pages 1217-1264. citation courtesy of

Users who downloaded this paper also downloaded these:
Ireland w8115 Money's Role in the Monetary Business Cycle
Bernanke, Boivin, and Eliasz w10220 Measuring the Effects of Monetary Policy: A Factor-Augmented Vector Autoregressive (FAVAR) Approach
McCallum w18215 Determinacy, Learnability, Plausibility, and the Role of Money in New Keynesian Models
Clarida, Gali, and Gertler w7147 The Science of Monetary Policy: A New Keynesian Perspective
Leeper and Zha w9063 Empirical Analysis of Policy Interventions
 
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