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- W2100665838 abstract "THIS IS A STUDY of the relation between Federal Reserve policy and the cyclical movement of the money supply. Attention is restricted to monetary policy as conducted by the Federal Reserve System through its general credit controls-openmarket operations, rediscount rates, and reserve requirements. Three basic assumptions are made: (1) the money supply is an important independent economic variable; (2) the Federal Reserve does have the ability 'to influence the money supply; and (3) the Baude method does isolate and measure cyclical movements of the money supply. The money supply concepts employed were various combinations of demand deposits, currency in circulation, time and saving deposits, and government deposits. The cyclical patterns yielded by the various measures were almost identical. The cyclical patterns were derived by the Baude method of cycle analysis which uses a system of difference equations. It is predicated on the assumption that trend forces over a period of time can be represented by a low-order equation while cycle forces can be represented by a sine curve. Thus the influence of trend will be eliminated by a process of successive differences while the influence of the cycle will not. The Baude method identifies four phases in the cyclical pattern-phase I from the cycle peak to the falling point of inflection; phase II from that point to the cycle trough; phase III from the cycle trough to the rising point of inflection; and phase IV from that point to the cycle peak. Cyclical forces are contractionary during phases I and II and expansionary during phases III and IV. Countercyclical policy with respect to the money supply would thus require expansionary policy during phases I and II and restrictive policy during phases III and IV. The study consists of four sections: (1) concepts and issues in the area of monetary policy; (2) concepts of the money supply and the cyclical patterns therein; (3) theory of general credit controls; and (4) the historical, empirical examination of the influence of Federal Reserve policy on the cyclical movement of the money supply. The historical chapters relate the chronology of Federal Reserve policy to the cycles in the money stock as isolated by the Baude method. These relations lead to three general findings as follows:" @default.
- W2100665838 created "2016-06-24" @default.
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- W2100665838 date "1965-03-01" @default.
- W2100665838 modified "2023-09-24" @default.
- W2100665838 title "THE EFFECT OF FEDERAL RESERVE POLICY ON THE CYCLICAL MOVEMENT OF THE MONEY SUPPLY*" @default.
- W2100665838 doi "https://doi.org/10.1111/j.1540-6261.1965.tb00192.x" @default.
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