IDEAS home Printed from https://ideas.repec.org/a/bla/coecpo/v5y1987i2p31-43.html
   My bibliography  Save this article

Replacing The Fomc By A Pc

Author

Listed:
  • THOMAS MAYER

Abstract

Recent behavior of velocity suggests that a stable monetary growth rate rule could have dangerous consequences. Hence this paper suggests a compromise–adjusting the money growth rate only in accordance with past changes in velocity. This preserves most of the benefits of a stable monetary growth rate rule.

Suggested Citation

  • Thomas Mayer, 1987. "Replacing The Fomc By A Pc," Contemporary Economic Policy, Western Economic Association International, vol. 5(2), pages 31-43, April.
    • Handle: RePEc:bla:coecpo:v:5:y:1987:i:2:p:31-43
    DOI: 10.1111/j.1465-7287.1987.tb00254.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1465-7287.1987.tb00254.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1465-7287.1987.tb00254.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lombra, Raymond & Moran, Michael, 1980. "Policy advice and policymaking at the federal reserve," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 13(1), pages 9-68, January.
    2. M. Bronfenbrenner, 1961. "Statistical Tests of Rival Monetary Rules: Quarterly Data Supplement," Journal of Political Economy, University of Chicago Press, vol. 69(6), pages 621-621.
    3. Barro, Robert J. & Gordon, David B., 1983. "Rules, discretion and reputation in a model of monetary policy," Journal of Monetary Economics, Elsevier, vol. 12(1), pages 101-121.
    4. Franco Modigliani, 1964. "Some Empirical Tests of Monetary Management and of Rules versus Discretion," Journal of Political Economy, University of Chicago Press, vol. 72(3), pages 211-211.
    5. Allan H. Meltzer, 1984. "Price stability and public policy (overview)," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 209-222.
    6. Friedman, Milton, 1982. "Monetary Policy: Theory and Practice: A Reply," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 14(3), pages 404-406, August.
    7. Friedman, Milton, 1982. "Monetary Policy: Theory and Practice," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 14(1), pages 98-118, February.
    8. James Tobin, 1970. "Money and Income: Post Hoc Ergo Propter Hoc?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(2), pages 301-317.
    9. McGibany, James M. & Nourzad, Farrokh, 1985. "Income taxes and the income velocity of money: An empirical analysis," Journal of Macroeconomics, Elsevier, vol. 7(4), pages 523-535.
    10. Tobin, James, 1983. "Monetary Policy: Rules, Targets, and Shocks," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 15(4), pages 506-518, November.
    11. Franco Modigliani, 1977. "The monetarist controversy; or, should we forsake stabilization policies?," Economic Review, Federal Reserve Bank of San Francisco, issue Spr suppl, pages 27-46.
    12. Robert E. Weintraub, 1983. "What Type of Monetary Rule?," Cato Journal, Cato Journal, Cato Institute, vol. 3(1), pages 171-188, Spring.
    13. Craine, Roger & Havenner, Arthur & Berry, James, 1978. "Fixed Rules vs. Activism in the Conduct of Monetary Policy," American Economic Review, American Economic Association, vol. 68(5), pages 769-783, December.
    14. M. Bronfenbrenner, 1961. "Statistical Tests of Rival Monetary Rules," Journal of Political Economy, University of Chicago Press, vol. 69(1), pages 1-1.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Robert D. Auerbach, 1991. "Institutional Preservation At The Federal Reserve," Contemporary Economic Policy, Western Economic Association International, vol. 9(3), pages 46-58, July.
    2. Franco Modigliani, 1988. "The Monetarist Controversy Revisited," Contemporary Economic Policy, Western Economic Association International, vol. 6(4), pages 3-18, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael D. Bordo & Anna J. Schwartz, 1987. "The Importance of Stable Money: Theory and Evidence," NBER Chapters, in: Money in Historical Perspective, pages 255-270, National Bureau of Economic Research, Inc.
    2. Goodhart, Charles, 1989. "The Conduct of Monetary Policy," Economic Journal, Royal Economic Society, vol. 99(396), pages 293-346, June.
    3. Bennett T. McCallum, 1984. "Credibility and monetary policy," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 105-135.
    4. Thomas Mayer, 2003. "The Monetarist Policy Debate: An Informal Survey," Working Papers 299, University of California, Davis, Department of Economics.
    5. Thomas Mayer, 1988. "Modigliani On Monetarism: A Response," Contemporary Economic Policy, Western Economic Association International, vol. 6(4), pages 19-24, October.
    6. Thomas Mayer, "undated". "Monetarists And Keynesians On Central Banking: A Study Of A Failed Debate," Department of Economics 96-06, California Davis - Department of Economics.
    7. Sylvie Rivot, 2015. "Rule-based frameworks in historical perspective: Keynes' and Friedman's monetary policies versus contemporary policy-rules," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 22(4), pages 601-633, August.
    8. Singleton,John, 2010. "Central Banking in the Twentieth Century," Cambridge Books, Cambridge University Press, number 9780521899093, September.
    9. Kui-Wai Li, 2013. "The US monetary performance prior to the 2008 crisis," Applied Economics, Taylor & Francis Journals, vol. 45(24), pages 3450-3461, August.
    10. Bordo, Michael D., 1986. "Explorations in monetary history: A survey of the literature," Explorations in Economic History, Elsevier, vol. 23(4), pages 339-415, October.
    11. Jonathan Benchimol & André Fourçans, 2016. "Nominal income versus Taylor-type rules in practice," Working Papers hal-01357870, HAL.
    12. Akhand Akhtar Hossain, 2009. "Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 12777.
    13. Alexander W. Salter & William J. Luther, 2019. "Adaptation and central banking," Public Choice, Springer, vol. 180(3), pages 243-256, September.
    14. Păun Cristian, 2010. "Banii, băncile centrale, politica monetară şi reglementarea sistemului bancar modern," Revista OEconomica, Romanian Society for Economic Science, Revista OEconomica, issue 02, June.
    15. Nelson, Edward, 2013. "Friedman's monetary economics in practice," Journal of International Money and Finance, Elsevier, vol. 38(C), pages 59-83.
    16. Gebhard Kirchgässner, 2016. "Voting and Popularity," CREMA Working Paper Series 2016-08, Center for Research in Economics, Management and the Arts (CREMA).
    17. Friedman, Benjamin M., 2012. "Rules versus discretion at the Federal Reserve System: On to the second century," Journal of Macroeconomics, Elsevier, vol. 34(3), pages 608-615.
    18. Michael Dotsey, 1991. "Open Market Operations in Australia: A US Perspective," The Economic Record, The Economic Society of Australia, vol. 67(3), pages 243-256, September.
    19. Akhand Akhtar Hossain, 2015. "The Evolution of Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 14611.
    20. Thornton, Daniel L., 2004. "The Fed and short-term rates: Is it open market operations, open mouth operations or interest rate smoothing?," Journal of Banking & Finance, Elsevier, vol. 28(3), pages 475-498, March.

    More about this item

    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:bla:coecpo:v:5:y:1987:i:2:p:31-43. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/weaaaea.html .

    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.