DISTRIBUTE LAGS, INTEREST RATE EXPECTATIONS, AND THE IMPACT OF THE MONETARY POLICY: AN ECONOMETRIC ANALYSIS OF A CANADIAN EXPERIENCE.

In this article the author studies the effect of a shift in monetary policy away from a program of pegged bond yields, which occurred along with an important structural reform in the Canadian monetary sector, on the ability of the monetary authorities to use the general instruments of monetary contr...

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Publicado en:American Economic Review Vol. 57; no. 2; pp. 444 - 462
Autor principal: Shapiro, Harold T.
Formato: Artículo
Publicado: American Economic Association May67
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Acceso en línea:Ver este registro en EBSCOhost
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        au: Shapiro, Harold T.
        affil: University of Michigan.
      su:
        Monetary policy
        Economic stabilization
        Interest rates
        Economic policy
        Economic reform
        Econometrics
        Demand function
        Canadian economy
        Canada
      sug:
        subj:
          Canada
          Monetary policy
          Economic stabilization
          Interest rates
          Economic policy
          Economic reform
          Econometrics
          Demand function
          Canadian economy
      ab: In this article the author studies the effect of a shift in monetary policy away from a program of pegged bond yields, which occurred along with an important structural reform in the Canadian monetary sector, on the ability of the monetary authorities to use the general instruments of monetary control for short-run stabilization policy. Section I describes briefly the main characteristics of the Canadian monetary sector and the structural reform on which this study centers attention. Section II develops and estimates the parameters of those relationships necessary to test my hypothesis. In general it is found that, although the structural reform and the sharp accompanying change in monetary policy had no important effects on the demand function for money balances and in particular on the lag structure of this relation, it did, indeed, affect the formation of interest rate expectations in a way that makes it more difficult to use monetary control for cyclical stabilization, It is also argued that the Treasury-Federal Reserve accord may have had a similar effect in the U.S.
      pubtype: Academic Journal
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    language: English
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          year: 1967
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