| Author: | Arestis, P. Chortareas, G. Tsoukalas, J.D. |
| Title: | Money and information in a new neoclassical synthesis framework |
| Journal: | Economic Journal
2010 : FEB, VOL. 120:542, p. 101-128 |
| Index terms: | monetary policy neo-classical economics models |
| Language: | eng |
| Abstract: | This paper considers a New Neoclassical Synthesis theoretical framework allowing a role for money. In the model, money has an informational role facilitating the estimation of the unobserved shocks driving potential output and thus the state of the economy. Estimated is a small-scale sticky price model using Bayesian techniques. The findings support the view of money having information value. In addition, the results highlight how modelling money demand can provide insights about structural features of the economy. |
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