TY  - JOUR
AU  - Leeper,Eric M.
AU  - Roush,Jennifer E.
TI  - Putting 'M' back in Monetary Policy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9552
PY  - 2003
Y2  - March 2003
UR  - http://www.nber.org/papers/w9552
L1  - http://www.nber.org/papers/w9552.pdf
N1  - Author contact info:
Eric M. Leeper
Department of Economics
304 Wylie Hall
Indiana University
Bloomington, IN  47405
Tel: 812/855-9157
Fax: NA
E-Mail: eleeper@indiana.edu

Jennifer Roush
Federal Reserve Board
E-Mail: Jennifer.E.Roush@frb.gov
AB  - 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.
ER  -