Dynamic IS curves with and without money: An international comparison

B-Tier
Journal: Journal of International Money and Finance
Year: 2008
Volume: 27
Issue: 4
Pages: 609-616

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

When money is added to a dynamic IS model, evidence from six countries indicates that money growth usually helps predict the GDP gap and that the predictive power of a short-term real interest is much weaker than previous work suggests. Thus, for dynamic IS models such as that used by Rudebusch, G.D., Svensson, L.E.O. [1999. Policy rules and inflation targeting. In: Taylor, J.B. (Ed.), Monetary Policy Rules. University of Chicago Press, Chicago, pp. 203-246; 2002. Eurosystem monetary targeting: lessons from US data. European Economic Review 46, 417-442], the omission of money appears to come at a high cost.

Technical Details

RePEc Handle
repec:eee:jimfin:v:27:y:2008:i:4:p:609-616
Journal Field
International
Author Count
2
Added to Database
2026-01-25