Monetary policy and monetary asset substitution

Barry E. Jones; Adrian R. Fleissig; Thomas Elger; Donald H. Dutkowsky

doi:10.1016/j.econlet.2007.05.018

Monetary policy and monetary asset substitution

Barry E. Jones, Adrian R. Fleissig, Thomas Elger, Donald H. Dutkowsky

Department of Economics

Research output: Contribution to journal › Article › peer-review

12 Scopus citations

Abstract

This paper shows that changing the target Federal Funds rate induces changes in relative user costs of monetary assets. Estimated Morishima elasticities of substitution from the Fourier Flexible form reveal greater substitution from transactions assets and savings deposits into small time deposits than into retail money market mutual funds.

Original language	English (US)
Pages (from-to)	18-22
Number of pages	5
Journal	Economics Letters
Volume	99
Issue number	1
DOIs	https://doi.org/10.1016/j.econlet.2007.05.018
State	Published - Apr 2008

Keywords

Federal funds rate
Fourier
Monetary asset substitution

ASJC Scopus subject areas

Finance
Economics and Econometrics

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10.1016/j.econlet.2007.05.018

Cite this

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title = "Monetary policy and monetary asset substitution",

abstract = "This paper shows that changing the target Federal Funds rate induces changes in relative user costs of monetary assets. Estimated Morishima elasticities of substitution from the Fourier Flexible form reveal greater substitution from transactions assets and savings deposits into small time deposits than into retail money market mutual funds.",

keywords = "Federal funds rate, Fourier, Monetary asset substitution",

author = "Jones, {Barry E.} and Fleissig, {Adrian R.} and Thomas Elger and Dutkowsky, {Donald H.}",

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AU - Elger, Thomas

AU - Dutkowsky, Donald H.

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Monetary policy and monetary asset substitution

Abstract

Keywords

ASJC Scopus subject areas

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