Money Still Matters

David Beckworth; Joshua R. Hendrickson

Corpus ID: 34436310

Money Still Matters

@inproceedings{Beckworth2015MoneySM,
  title={Money Still Matters},
  author={David Beckworth and Joshua R. Hendrickson},
  year={2015}
}

David Beckworth, Joshua R. Hendrickson
Published 2015

The workhorse of modern macroeconomics is the New Keynesian model. This model assumes that monetary policy is transmitted through the path of the shortterm nominal interest rate. Money, if it is included at all, is relegated to an inconsequential role in monetary policy analysis. The purpose of this paper is twofold. First, we summarize the literature on the existence and role of money that is ignored in the New Keynesian models. Second, we discuss the importance of properly measuring monetary… Expand