Abstract
Among the many excellent ideas contained in Rotemberg’s comments is a proposed new monetary aggregate, which Rotemberg calls the CE (currency equivalent) index. My reply consists primarily of the proof of a theorem regarding that index. The theorem supports Rotemberg’s index by providing a derivation of his index directly from economic theory, when the index is treated as a measure of the economic stock of money under stationary expectations.
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Barnett, W.A. (1991). A Reply to Julio J. Rotemberg. In: Belongia, M.T. (eds) Monetary Policy on the 75th Anniversary of the Federal Reserve System. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-3888-8_12
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DOI: https://doi.org/10.1007/978-94-011-3888-8_12
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