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Chapter 24 Monetary Policy Transmission Mechanisms
Chapter Objectives
By the end of this chapter, students should be able to:
- Explain why structural models are generally superior to reduced-form models.
- Describe the types of evidence that can strengthen researchers’ conviction that a reduced-form model has the direction of causation right, say, from money (M) to output (Y).
- Describe the evidence that money matters.
- List and explain several important monetary policy transmission mechanisms.