MARC Record from Library of Congress

LEADER: 02131nam a22003137a 4500
001 2007615259
003 DLC
005 20070419180554.0
007 cr |||||||||||
008 070419s2007 mou sb f000 0 eng
010 $a 2007615259
040 $aDLC$cDLC
050 00 $aHB1
100 1 $aAndrés, Javier.
245 10 $aMoney and the natural rate of interest$h[electronic resource] :$bstructural estimates for the United States and the euro area /$cbyJavier Andrés, J. David López-Salido, and Edward Nelson.
260 $a[St. Louis, Mo.] :$bFederal Reserve Bank of St. Louis,$c[2007]
490 1 $aWorking paper ;$v2007-005A
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 4/19/2007.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"We examine the role of money, allowing for three competing environments: the New Keynesian model with separable utility and static money demand; a non-separable utility variant with habit formation; and a version with adjustment costs for holding real balances. The last two variants imply forward-looking behavior of real money balances, as it is optimal for agents to allow their forecast of future interest rates to affect current portfolio decisions. We distinguish between these specifications by conducting a structural econometric analysis for the U.S. and the euro area. FIML estimates confirm the forward-looking character of money demand. Using these estimates we find that, in response to preference and technology shocks, real money balances are valuable in anticipating future variations in the natural interest rate"--Federal Reserve Bank of St. Louis web site.
653 $aMoney;$anatural rate of interest;$aNew Keynesian models
700 1 $aLópez-Salido, J. David.
700 1 $aNelson, Edward,$d1971-
710 2 $aFederal Reserve Bank of St. Louis.
830 0 $aWorking paper (Federal Reserve Bank of St. Louis : Online) ;$v2007-005A.
856 40 $uhttp://research.stlouisfed.org/wp/more/2007-005/