Evaluating the effectiveness of monetary reforms

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

Using a monthly model of the economy, containing a detailed financial sector, various monetary reforms are evaluated in a stochastic setting. The setting is stochastic because parameters must be estimated from finite data sets and because unexplained residuals exist. The objective function is a single-period, simple quadratic function in income. The problem then reduces to finding the opportunity locus (mean-variance curve) corresponding to each reform; the more effective the reform the more favorable the mean-variance tradeoff. The general finding is that most of the reforms considered are effective, but their impact is not very significant.

Original languageEnglish (US)
Pages (from-to)271-296
Number of pages26
JournalJournal of Monetary Economics
Volume2
Issue number3
DOIs
StatePublished - Jul 1976

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Monetary reform
Mean-variance
Financial sector
Trade-offs
Income
Objective function

Cite this

Evaluating the effectiveness of monetary reforms. / Rolnick, Arthur J.

In: Journal of Monetary Economics, Vol. 2, No. 3, 07.1976, p. 271-296.

Research output: Contribution to journalArticle

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