Accession Number : AD0671832

Title :   DISTRIBUTED LAGS AND THE EFFECTIVENESS OF MONETARY POLICY.

Descriptive Note : Research paper,

Corporate Author : PRINCETON UNIV N J ECONOMETRIC RESEARCH PROGRAM

Personal Author(s) : Howrey,E. Philip

Report Date : MAY 1968

Pagination or Media Count : 20

Abstract : As a result of an apparent revival of interest in monetary theory and policy, a considerable amount of effort has been devoted recently to an analysis of the operational lags to which monetary policy is subject. Underlying this interest in the time-form of the response of income to changes in monetary policy is the notion that the (potential) effectiveness of monetary policy is a function of the speed with which income responds to changes in the money supply. It seems to be accepted, more in general, perhaps, than in any particular case, that if aggregate demand responds with a long distributed lag to changes in the money supply, the scope for contracyclical monetary management may be quite limited. This paper is devoted to a formal analysis of the relationship between the speed of adjustment of income to changes in the money supply and the effectiveness of contracyclical monetary policy. (Author)

Descriptors :   (*MONEY, UNITED STATES GOVERNMENT), (*ECONOMICS, STABILITY), STOCHASTIC PROCESSES, MATHEMATICAL MODELS, SENSITIVITY, EMPLOYMENT, DISTRIBUTION(ECONOMICS)

Subject Categories : Economics and Cost Analysis
      Operations Research

Distribution Statement : APPROVED FOR PUBLIC RELEASE