Monetary Aggregates and Liquidity in a Neo‐Wicksellian Framework
在标准新威克塞尔模型中引入银行和债券，构建更完整的BB模型，通过比较两模型的二阶矩、方差分解和脉冲响应，检验简化NW模型能否准确刻画宏观经济行为，并分析货币总量与流通速度对通胀的预测作用。
Woodford (2003) describes a popular class of neo‐Wicksellian (NW) models in which monetary policy is characterized by an interest rate rule, and the money market and financial institutions are typically not even modeled. Critics contend that these models are incomplete and unsuitable for monetary policy evaluation. Our banks and bonds (BB) model starts with a standard NW model and then adds banks and a role for bonds in the liquidity management of households and banks. The BB model gives a more complete description of the economy, but the NW model has the virtue of simplicity. Our purpose here is to see if the NW model gives a reasonably accurate account of macroeconomic behavior in the more complete BB model. We do this by comparing the models' second moments, variance decompositions, and impulse response functions. We also study the role of monetary aggregates and velocity in predicting inflation in the two models.