#1990-008A "The P-Star Approach to the Link Between Money and Prices"
by John A. Tatom


This paper examines several specification errors in the M2-based P* model and develops an M1-based estimate of this model. The apparent statistical significance of M2 is shown to arise from a spurious regression that uses a non-stationary regressor and because the significance test for M2 is biased by including the influence of a lagged dependent variable whose coefficient is not normally distributed. More...

#1990-007A "Endogenous Innovation in a North-North Model of the Product Cycle."
by Alison Butler


This paper examines the effect of endogenous innovation in a North-North model of the product cycle. Innovation is a dynamic process that requires labor to b employed in research and development for innovation to occur. More...

#1990-006A "The Inflationary Effect of the Use of Reserve Ratio Reductions, or Open Market Purchases to Reduce Market Interest Rates: A Theoretical Comparison."
by Steven H. Russell, and Marco Espinosa


No abstract available. More...

#1990-005A "Precommitment and Random Exchange Rates in Symmetric Duopoly: A New Theory of Multinational Production"
by David B. Nickerson, Marsha Courchane, and Lucio Sarno
June 1990

Recent volatility in real exchange rates has renewed interest in the nature of multinational firms. One increasingly common phenomenon involves the foreign sourcing of production, in which certain domestic firms choose to produce part or all of their product abroad and then export the commodity for domestic sale. More...

#1990-004A "When and How Much to Talk: Credibility and Flexibility in Monetary Policy with Private Information"
by Michelle R. Garfinkel, and Seonghwan Oh
June 1990

This paper analyzes how noisy or imprecise announcements might partially remove the inefficiencies resulting from the credibility problem in monetary policy when the presence of non-verifiable private information adds another dimension to that problem. The analysis finds that imprecise or noisy announcements can be a meaningful form of communication only if it is possible to "tie" the hands of the monetary authority somehow. More...

#1990-003A "Optimal Monopoly Investment and Capacity Utilization under Random Demand"
by David B. Nickerson, and Stanley S. Reynolds
April 1990

Unique value-maximizing programs of irreversible capacity investment and capacity utilization are described and shown to exist under general conditions for monopolist exhibiting capital adjustment costs and serving random consumer demand for a nondurable good over an infinite horizon. Stationary properties of these programs are then fully characterized under the assumption of serially independent demand disturbances. More...

#1990-002A "The Link Between Monetary Aggregates and Prices"
by John A. Tatom


Abstract not available. More...

#1990-001A "Strategic Discipline in Monetary Policy with Private Information: Optimal Targeting Periods"
by Michelle R. Garfinkel, and Seonghwan Oh


This paper analyzes the optimal choice of the length of time over which the monetary authority targets money growth, in a setting where the monetary authority’s lack of credibility potentially gives rise to an inflationary bias. More...