MONETARY POLICY AND SHORT-TERM INTEREST RATES
New Evidence on the Liquidity Effect
Author: Gikas A. Hardouvelis
Journal: Economics Letters 25 (1987),63-66
Abstract: There is evidence of a strong liquidity effect in the period October 1979-October 1982, when the Federal Reserve targeted the growth rate of Ml, and thus monetary surprises were more exogenous than they were in other periods.