Abstract
In this paper we consider the effects of uncertainty upon the optimum choice of monetary policy instrument. Specifically we extend the work of Poole (1970), and others, to allow for the existence of multiplicative as well as additive stochastic coefficients in the structural equations of the standard IS-LM macroeconomic model. We demonstrate that the commonly accepted notion that money-stock control is superior to interest-rate control when the IS schedule is stochastic is not always valid.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
