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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

The FOMC in 1974: Monetary Policy During Economic Uncertainty - Review

During 1974 many uncertainties existed in the implementation of monetary policy. Foremost was the likely course of economic activity during the year. Economic forecasters, both private and government, badly misjudged actual economic developments. Forecasts throughout the year were quite varied and were frequently revised.

research.stlouisfed.org/.../04/01/the-fomc-in-1974-monetary-policy-during-economic-uncertainty

Crowding Out and Its Critics - Review

Does Government spending displace a near equal amount of private spending? This notion, popularly known as the “crowding-out” effect of Government expenditures, has recently gained wide-spread attention at two levels. First, at the policy level, public officials have expressed concern, that massive current and projected Federal deficits will have a deleterious effect on private capital expenditures for some time to come. Second, at the academic level, “crowding out” is at least one of the issues which helps to distinguish between followers of the two major macroeconomic schools of thought—Keynesians and monetarists.

research.stlouisfed.org/publications/review/1975/12/01/crowding-out-and-its-critics