Peruvian paper questions role of money in New-Keynesian models

central-bank-of-peru

A working paper published by the Central Bank of Peru on October 16 investigates the use of New-Keynesian models in monetary policy analysis, focusing on why they do not include any measure of the quantity of money within their variables.

The author, Bennett McCallum, says "almost all" central banks conduct policy by deciding upon and setting interest rates without explicit reference to the change in real-money balances over time. In principle, the author says, this is incorrect. Rather, the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.