IDEAS home Printed from https://ideas.repec.org/a/fec/journl/v7y2012i2p263-285.html
   My bibliography  Save this article

Money Quantity and Optimal Monetary and Fiscal Policy: A Quantitative Analysis

Author

Listed:
  • Xuan Liu

    (Department of Economics, East Carolina University, Greenville, NC 27858, USA)

Abstract

This paper quantitatively analyzes the impact of money stock on optimal monetary and fiscal policy in a stochastic production economy with sticky prices. The numerical results indicate that a sufficient large quantity of money makes a noticeable difference in many aspects of optimal monetary and fiscal policy. They suggest that the volatile inflation in China may not be as bad as the existing theory would have implied if its large amount of money is taken into consideration.

Suggested Citation

  • Xuan Liu, 2012. "Money Quantity and Optimal Monetary and Fiscal Policy: A Quantitative Analysis," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 7(2), pages 263-285, June.
    • Handle: RePEc:fec:journl:v:7:y:2012:i:2:p:263-285
    as

    Download full text from publisher

    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-001-012-0012-3
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    optimal fiscal and monetary policy; money stock; sticky prices;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fec:journl:v:7:y:2012:i:2:p:263-285. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Frank H. Liu (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.