Interest Rate Smoothing and Price Level Trend-Stationarity

Federal Reserve Bank of Richmond Working Paper No. 86-4

19 Pages Posted: 24 Oct 2012

See all articles by Marvin Goodfriend

Marvin Goodfriend

Carnegie Mellon University - David A. Tepper School of Business; National Bureau of Economic Research (NBER)

Date Written: July 1, 1986

Abstract

For industrial countries in the post-war period, the price level and the money stock have displayed little tendency to revert to given growth paths. Indeed, this stylized fact is frequently referred to by monetarist critics of central banks, who point out that periods of temporarily high or low money growth, rather than being subsequently reversed, typically alter the level of money stock and prices permanently.

Suggested Citation

Goodfriend, Marvin, Interest Rate Smoothing and Price Level Trend-Stationarity (July 1, 1986). Federal Reserve Bank of Richmond Working Paper No. 86-4. Available at SSRN: https://ssrn.com/abstract=2123506 or http://dx.doi.org/10.2139/ssrn.2123506

Marvin Goodfriend (Contact Author)

Carnegie Mellon University - David A. Tepper School of Business ( email )

5000 Forbes Avenue
Pittsburgh, PA 15213-3890
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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