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A note on the neutrality of temporary monetary disturbances

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  • Goodfriend, Marvin S.
  • King, Robert G.

Abstract

In the classical macroeconomic models constructed by Lucas (1972, 1975) and Barro (1976), monetary aggregates are assumed to be generated by a logarithmic random walk. This specification implies that all monetary growth is (a) unanticipated and (b) permanent.
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Suggested Citation

  • Goodfriend, Marvin S. & King, Robert G., 1981. "A note on the neutrality of temporary monetary disturbances," Journal of Monetary Economics, Elsevier, vol. 7(3), pages 371-385.
    • Handle: RePEc:eee:moneco:v:7:y:1981:i:3:p:371-385
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    References listed on IDEAS

    as
    1. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1.
    2. Barro, Robert J., 1976. "Rational expectations and the role of monetary policy," Journal of Monetary Economics, Elsevier, vol. 2(1), pages 1-32, January.
    3. Lucas, Robert Jr., 1972. "Expectations and the neutrality of money," Journal of Economic Theory, Elsevier, vol. 4(2), pages 103-124, April.
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    Cited by:

    1. Richard G. Anderson & Charles S. Gascon & Yang Liu, 2010. "Doubling your monetary base and surviving: some international experience," Review, Federal Reserve Bank of St. Louis, vol. 92(Nov), pages 481-506.

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