Optimal Control of the Money Supply
    Working Paper 0912
  
        
    DOI 10.3386/w0912
  
        
    Issue Date 
  
          Using optimal control theory and a vector autoregressive representation of the relationship between money and interest rates, one can derive a feedback control procedure which defines the best possible tradeoff between interest rate volatility and money supply fluctuations and which could be used to reduce both from their current levels.
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      Copy CitationRobert B. Litterman, "Optimal Control of the Money Supply," NBER Working Paper 0912 (1982), https://doi.org/10.3386/w0912.
 
Published Versions
Quarterly Review, Federal Reserve Bank of Minneapolis, Fall 1982, 6(3): 1-9. citation courtesy of ![]()