文章基本信息

标题：On the Equivalence of Money Growth and Interest Rate Policy
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作者：Andreas Schabert
期刊名称：Departmental Discussion Papers / University of Glasgow, Department of Economics
出版年度：2003
卷号：1
出版社：University of Glasgow, Department of Economics
摘要：Central bank behavior is often summarized by simple rules for operating targets, i.e., for a short-run nominal interest rate or for a money growth rate. In this paper we examine conditions under which these rules lead to identical fundamental solutions of a conventional business cycle model. When prices are ‡exible, forward looking interest rate rules can be equivalent to money growth policy. In particular, the consumption Euler equation implies that constant money growth is equivalent to a passive interest rate regime, while an active interest rate rule corresponds to an accommodating money growth policy. When prices are sticky, equivalence further requires either interest rate policy or households’ behavior to be history dependent. However, a central bank, which controls the money growth rate, cannot implement a sequence of nominal interest rates satisfying Taylor’s (1993) rule on a saddle stable equilibrium path.
关键词：Monetary policy regimes, fundamental solution, history dependence, saddle path stability, beginning-of-period money.