@article{Resurrecting:1530,
      recid = {1530},
      author = {Dorich, José},
      title = {Resurrecting the Role of Real Money Balance Effects},
      address = {2009},
      pages = {1 online resource (iii, 42 pages)},
      abstract = {I present a structural econometric analysis supporting the  hypothesis that money is still relevant for shaping  inflation and output dynamics in the United States. In  particular, I find that real money balance effects are  quantitatively important, although smaller than they used  to be in the early postwar period. Moreover, I show three  additional implications of the econometric estimates for  monetary policy analysis. First, by including real money  balance effects into the standard sticky price model, two  stylized facts can be explained: the modestly procyclical  real wage response to a monetary policy shock and the  supply side effects of monetary policy. Second, the  existence of real money balance effects causes higher  volatility of output and lower volatility of interest rates  under the optimal monetary policy. Third, the reduction in  the size of real money balance effects can account for a  significant decline in macroeconomic volatility.},
      url = {http://www.oar-rao.bank-banque-canada.ca/record/1530},
      doi = {https://doi.org/10.34989/swp-2009-24},
}