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June/July 1980

Posted 1980-06-01

Eurodollars and the U.S. Monetary Supply

by Anatol Balbach and David H. Resler

This article addresses the relationship between the eurodollar market and monetary control. It assumes throughout that the Federal Reserve System does not engage in eurodollar transactions or alter its monetary policy as a result of such transactions.

Posted 1980-06-01

Dynamic Forecasting and the Demand for Money

by Scott E. Hein

This paper reexamines the conclusions that have emerged from inadequate dynamic money demand forecasts. First, it presents a conventional money demand relationship and its post-1974 dynamic forecasts, along with a restatement of the conclusions drawn from such an investigation.

Posted 1980-06-01

Financing Constraints and the Short-Run Response to Fiscal Policy

by Laurence H. Meyer

This paper presents a framework for analyzing fiscal policy that incorporates the interaction between government and the private sector in their spending and borrowing decisions. It shows that ambiguity surrounding the income multiplier for increased government expenditures results from the failure to model correctly the stock repercussions of changes in government spending and private investment.