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REPLACING THE FOMC BY A PC
Author(s) -
MAYER THOMAS
Publication year - 1987
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.1987.tb00254.x
Subject(s) - economics , monetary economics , monetary policy , compromise , growth rate , econometrics , mathematics , social science , geometry , sociology
Recent behavior of velocity suggests that a stable monetary growth rate rule could have dangerous consequences. Hence this paper suggests a compromise–adjusting the money growth rate only in accordance with past changes in velocity. This preserves most of the benefits of a stable monetary growth rate rule.