THE DEMAND AND LIQUIDITY EFFECTS OF MONETARY SHOCKS

• 成果类型: Article
• 署名作者: DOW, JP
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/0304-3932(95)01205-0
• 发表日期: 1995
• 页码: 91-115
• 关键词: business cycles; monetary shocks

摘要

This paper examines the effect of a monetary shock in a stochastic growth model with a cash-in-advance constraint and a financial intermediary. It explores the differences between the results of restrictions on nominal price adjustment (the demand effect) and restrictions on savings behavior (the liquidity effect). It is found that the model that produces the appropriate response to a temporary monetary shock includes both demand and liquidity effects.