Capital accumulation, price stability, and base drift
Article Abstract:
The central bank's price-smoothing goals and its actual monetary adjustment actuations are discussed. It has been observed that adjusting money supply to nominal interest rate deviations and errors in past monetary policies entails some amount of base drift. A complete base drift is not to be recommended, which means that completely ignoring past monetary policies is not ideal. Furthermore, aside from adjusting to the two foregoing variables for the assurance of price stability, cointegration with the money supply, capital stock and labor force dynamics are required.
Publication Name: Journal of Macroeconomics
Subject: Economics
ISSN: 0164-0704
Year: 1992
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The role of money in Canada
Article Abstract:
A study was conducted to evaluate the relationships between money, prices and income in Canada. The study applies econometric cointegration to examine nonstationary time series data. Results show that although monetary aggregates are not good policy goals, they present information on macroeconomic activity which can be used for setting monetary policy. These results validate the role of aggregates as target and information variables.
Publication Name: Journal of Macroeconomics
Subject: Economics
ISSN: 0164-0704
Year: 1993
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Note on human capital externalities
Article Abstract:
Human capital externalities are important in traditional growth accounting models despite their absence in neoclassical growth theory. Externality absence creates a vacuum in the integration of transitional dynamics for analyzing long-run conditions defining the American economy. This integration can be achieved by introducing the human capital factor through linear production technology data.
Publication Name: Journal of Macroeconomics
Subject: Economics
ISSN: 0164-0704
Year: 1996
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