Velocity innovations, financial markets, and the real economy

• 成果类型: Article
• 署名作者: Padrini, F
• 署名单位: Organisation for Economic Co-operation & Development (OECD)
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(02)00099-5
• 发表日期: 2002
• 页码: 521-532
• 关键词: velocity of money; financial markets

摘要

Empirical and theoretical evidence is presented showing that monetary policy and velocity of money innovations might lead to opposite effects in the financial markets. First, it is shown for the US economy that monetary policy and velocity shocks cause a reduction and an increase in the interest rates, respectively. Then, a stochastic general equilibrium model is illustrated in which monetary policy innovations produce excess loan supply and velocity innovations produce excess loan demand. Therefore, the change in interest rates needed to re-establish equilibrium in the loan market is of opposite sign as a response to the two types of innovations. (C) 2002 Elsevier Science B.V. All rights reserved.