@article{Feldkord:26343,
      recid = {26343},
      author = {Feldkord, Eva-Ulrike},
      title = {On the Relevance of Monetary Aggregates in Monetary Policy  Models},
      address = {2005},
      number = {879-2016-64378},
      series = {HWWA Discussion Paper 317},
      pages = {37},
      year = {2005},
      abstract = {This paper develops a business cycle model with a  financial intermediation sector. Financial wealth is  defined as a predetermined state variable. Both, the  additional sector of financial intermediaries and  predetermination of financial wealth, affect the demand for  real financial wealth. If real financial wealth also enters  the monetary policy rule, the conditions for stability and  uniqueness of the macroeconomic equilibrium path change  fundamentally compared to standard New Keynesian business  cycle models. Here, real financial wealth is interpreted as  a real broad monetary aggregate. Furthermore, different  interest rate rules and their consequences for stability  and uniqueness of the macroeconomic equilibrium path are  considered. Two monetary policy rules are found to be  feasible - i.e. if these monetary policy rules are applied  there exists a stable and unique macroeconomic equilibrium  path. Simulations of the model showed that the monetary  policy rule considering inflation and broad money as  indicators is optimal.},
      url = {http://ageconsearch.umn.edu/record/26343},
      doi = {https://doi.org/10.22004/ag.econ.26343},
}