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A Monetary Model of Nominal Income Determination - Review

During the past several years the Federal Reserve Bank of St. Louis has presented a number of empirical studies demonstrating a strong and predictable response of nominal gross national product (GNP) to changes in the nation’s money stock. These studies found that changes in the secular trend of the money stock are the prime determinant of changes in the secular trend of GNP. They also found that short-run changes in GNP are related to similar changes in the money stock. On the other hand, changes in Government spending were found to have only a temporary short-run influence on changes in GNP. A number of other studies, using variations of the approach of the St. Louis studies, have yielded similar empirical relationships.

research.stlouisfed.org/.../review/1975/06/01/a-monetary-model-of-nominal-income-determination

Three Approaches to Money Stock Determination - Review

Movements in employment, output, and prices affect the economic well-being of each member of our society. These movements, in turn, are influenced by the ability and desire of consumers, businesses, and governments to spend, in relation to the productive potential of the economy.

research.stlouisfed.org/.../review/1967/10/01/three-approaches-to-money-stock-determination

1967—A Year of Constraints on Monetary Management - Review

Monetary actions in 1967 were very expansionary until the last few weeks of the year. These actions followed a period of very strong monetary restraint during the last half of 1966. The pace of economic activity slowed during the first half of 1967 and, in response, the Federal Open Market Committee (FOMC) continued the expansionary monetary policy adopted in late 1966. During the second half of 1967 prices resumed their rapid upward advance of late 1966. Nevertheless, FOMC policy was not changed significantly until late in the year; prior to then a majority of the Committee accepted several constraints on its ability to adopt a restrictive monetary policy.

research.stlouisfed.org/.../review/1968/05/01/1967a-year-of-constraints-on-monetary-management