| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 965545 | Journal of Macroeconomics | 2012 | 8 Pages |
Abstract
⺠This paper investigates the importance on money aggregates in a DSGE model with a simple banking sector. ⺠The theoretical framework comprises a forward-looking IS and Phillips curves, a money demand relationship, and a Taylor rule. ⺠The presence of a banking sector appends an additional term to the IS and money demand curves. ⺠Maximum likelihood estimation reveals that money balances play a significant role. ⺠The responses of the model's variables to shocks remain qualitatively similar to a model without money.
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Authors
Francesco Zanetti,