M2 and Monetary Policy: A Critical Review of the Recent Debate
19 Pages Posted: 14 Nov 2012
Date Written: 1994
Abstract
Recently an intense debate has focused on M2’s usefulness as an intermediate target for monetary policy. A review of two leading contributions to the debate indicates that their empirical results are sensitive to changes in key assumptions. Moreover, their empirical results lack the deep structural foundations that are necessary for reliable policy analysis.
Suggested Citation: Suggested Citation
Dotsey, Michael and Otrok, Christopher, M2 and Monetary Policy: A Critical Review of the Recent Debate (1994). FRB Richmond Economic Quarterly, vol. 80, no. 1, Winter 1994, pp. 41-59, Available at SSRN: https://ssrn.com/abstract=2125397
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