Evaluating the effectiveness of monetary reforms

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

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

Bibliographical note

Funding Information:
underlying my thesis and the paper was generally financed by the Federal Reserve Bank of Minneapolis. I am indebted to James Henderson, John Kareken, and especially Nell Walla,:e for their many helpful comments. I accept the sole responsibility for any remaining errors. tFor attempts to evaluate specific reforms see Smith (1967), Poole and Licberman (1972}, Benston (1969), Dewdld (1971) and Tobin and Brainard (1963).

Copyright:
Copyright 2014 Elsevier B.V., All rights reserved.

Fingerprint

Dive into the research topics of 'Evaluating the effectiveness of monetary reforms'. Together they form a unique fingerprint.

Cite this