The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Monetary Disequilibrium and Market Clearing

  • Herschel I. Grossman
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_1159

Abstract

Conventional wisdom interprets the empirical relation between monetary aggregates and measures of real aggregate economic activity primarily as reflecting the effect of monetary policy on real activity. A host of historical episodes apparently accord with this interpretation. It is, for example, hard to deny that disinflationary monetary policy contributed to the 1982 recession in the United States.

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Herschel I. Grossman
    • 1
  1. 1.