Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/241164 
Year of Publication: 
2021
Series/Report no.: 
Staff Report No. 971
Publisher: 
Federal Reserve Bank of New York, New York, NY
Abstract: 
We would like to propose a new framework for monetary policy analysis that encompasses, as a special case, the Neo-Wicksellian paradigm. A general form of an aggregate-demand equation reveals a role for liquidity, as well as less effective movements in future real rates with respect to current ones, in stimulating aggregate demand. The quantity of reserves and their interest rate both matter for determining inflation and economic activity.
Subjects: 
monetary policy framework
reserves
inflation
JEL: 
E31
E43
E52
E58
Document Type: 
Working Paper

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