@techreport{Feldkord2005relevance,
abstract = {This paper develops a business cycle model with a financial intermediation sector.
Financial wealth is defined as a predetermined state variable. Both, the additional sector
of financial intermediaries and predetermination of financial wealth, affect the demand
for real financial wealth. If real financial wealth also enters the monetary policy rule, the
conditions for stability and uniqueness of the macroeconomic equilibrium path change
fundamentally compared to standard New Keynesian business cycle models. Here, real
financial wealth is interpreted as a real broad monetary aggregate. Furthermore, different
interest rate rules and their consequences for stability and uniqueness of the
macroeconomic equilibrium path are considered. Two monetary policy rules are found
to be feasible - i.e. if these monetary policy rules are applied there exists a stable and
unique macroeconomic equilibrium path. Simulations of the model showed that the monetary
policy rule considering inflation and broad money as indicators is optimal.},
author = {Eva-Ulrike Feldkord},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {E52; E51; E41; 330; broad money; macroeconomic stability; monetary policy; Ungleichgewichtstheorie; Konjunkturtheorie; Finanzintermedi\"{a}r; Geldverm\"{o}gen; Gleichgewichtsstabilit\"{a}t; Geldpolitik; Geldpolitisches Ziel; Theorie},
language = {eng},
number = {317},
title = {On the relevance of monetary aggregates in monetary policy models},
type = {HWWA Discussion Paper},
url = {http://hdl.handle.net/10419/19289},
year = {2005}
}
