Research Discussion Paper – RDP 2010-05 Direct Effects of Money on Aggregate Demand: Another Look at the Evidence

Contents

• Introduction
• Empirical Analysis
• An Extended New Keynesian Model
• Monte Carlo Analysis
• Conclusion
• Appendix A: Data Description and Sources
• References

We thank Peter Ireland, Christopher Kent and Tim Robinson for suggestions. We also thank Adrian Pagan for comments on an early draft. Responsibility for any remaining errors rests with us. The views expressed here are our own and do not necessarily reflect those of the Reserve Bank of Australia.