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Monetizing the debt

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  • Daniel L. Thornton

Abstract

A more interesting and economically relevant definition of \\"monetizing the debt\\" is based on the Fed's motivation rather than its actions.
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Suggested Citation

  • Daniel L. Thornton, 1984. "Monetizing the debt," Review, Federal Reserve Bank of St. Louis, vol. 66(Dec), pages 30-43.
    • Handle: RePEc:fip:fedlrv:y:1984:i:dec:p:30-43:n:v.66no.10
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    References listed on IDEAS

    as
    1. Thornton, Daniel L & Batten, Dallas S, 1985. "Lag-Length Selection and Tests of Granger Causality between Money and Income," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 17(2), pages 164-178, May.
    2. Melvin, Michael, 1983. "The Vanishing Liquidity Effect of Money on Interest: Analysis and Implications for Policy," Economic Inquiry, Western Economic Association International, vol. 21(2), pages 188-202, April.
    3. Thomas J. Sargent & Neil Wallace, 1984. "Some Unpleasant Monetarist Arithmetic," Palgrave Macmillan Books, in: Brian Griffiths & Geoffrey E. Wood (ed.), Monetarism in the United Kingdom, pages 15-41, Palgrave Macmillan.
    4. Zellner, Arnold, 1979. "Causality and econometrics," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 10(1), pages 9-54, January.
    5. Wu, De-Min, 1983. "Tests of Causality, Predeterminedness and Exogeneity," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(3), pages 547-558, October.
    6. Allen, Stuart D. & Smith, Michael D., 1983. "Government borrowing and monetary accommodation," Journal of Monetary Economics, Elsevier, vol. 12(4), pages 605-616, November.
    7. Michael R. Darby, 1984. "Some pleasant monetarist arithmetic," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 8(Spr).
    8. Dallas S. Batten & Daniel L. Thornton, 1984. "Lag length selection and Granger causality," Working Papers 1984-001, Federal Reserve Bank of St. Louis.
    9. Geweke, John & Meese, Richard & Dent, Warren, 1983. "Comparing alternative tests of causality in temporal systems : Analytic results and experimental evidence," Journal of Econometrics, Elsevier, vol. 21(2), pages 161-194, February.
    10. Jacobs, Rodney L & Leamer, Edward E & Ward, Michael P, 1979. "Difficulties with Testing for Causation," Economic Inquiry, Western Economic Association International, vol. 17(3), pages 401-413, July.
    11. Brian R. Horrigan & Aris Protopapadakis, 1982. "Federal deficits: a faulty gauge of government's impact on financial markets," Business Review, Federal Reserve Bank of Philadelphia, issue Mar/Apr, pages 3-16.
    12. John A. Tatom, 1984. "A perspective on the federal deficit problem," Review, Federal Reserve Bank of St. Louis, vol. 66(Jun), pages 5-17.
    13. Keith M. Carlson, 1984. "Money growth and the size of the federal debt," Review, Federal Reserve Bank of St. Louis, vol. 66(Nov), pages 5-16.
    14. Barth, James & Sickles, Robin & Wiest, Philip, 1982. "Assessing the impact of varying economic conditions on federal reserve behavior," Journal of Macroeconomics, Elsevier, vol. 4(1), pages 47-70.
    15. Alan S. Blinder, 1982. "On the Monetization of Deficits," NBER Working Papers 1052, National Bureau of Economic Research, Inc.
    16. Dallas S. Batten & Daniel L. Thornton, 1984. "How robust are the policy conclusions of the St. Louis equation?: some further evidence," Review, Federal Reserve Bank of St. Louis, vol. 66(Jun).
    17. Guilkey, David K & Salemi, Michael K, 1982. "Small Sample Properties of Three Tests for Granger-Causal Ordering in a Bivariate Stochastic System," The Review of Economics and Statistics, MIT Press, vol. 64(4), pages 668-680, November.
    18. Thornton, Daniel L., 1984. "The government budget constraint with endogenous money," Journal of Macroeconomics, Elsevier, vol. 6(1), pages 57-67.
    19. Thomas M. Supel & Richard M. Todd, 1984. "Should currency be priced like cars?," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 8(Spr).
    20. Froyen, Richard T., 1974. "A test of the endogeneity of monetary policy," Journal of Econometrics, Elsevier, vol. 2(2), pages 175-188, July.
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    Cited by:

    1. Aloys L. Prinz & Hanno Beck, 2021. "Modern Monetary Theory: A Solid Theoretical Foundation of Economic Policy?," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 49(2), pages 173-186, June.
    2. Maxime Menuet & Alexandru Minea & Patrick Villieu, 2015. "Deficit Rules and Monetization in a Growth Model with Multiplicity and Indeterminacy," Working Papers halshs-01199774, HAL.
    3. Belliveau, Stefan, 2012. "Estimates of the fiscal impact multiplier in reduced-form equations," MPRA Paper 37103, University Library of Munich, Germany.
    4. Paul Mercier, 2017. "Public debt, central bank and money: Some clarifications," BCL working papers 108, Central Bank of Luxembourg.
    5. Daniel L. Thornton, 2012. "The Federal Reserve’s response to the financial crisis: what it did and what it should have done," Working Papers 2012-050, Federal Reserve Bank of St. Louis.

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    Keywords

    Debts; Public;

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