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  4. Fall 1995
  5. Monetary, Credit and (Other) Transmission Processes: A Monetarist Perspective

Journal of Economic Perspectives

ISSN 0895-3309 (Print) | ISSN 1944-7965 (Online)

Monetary, Credit and (Other) Transmission Processes: A Monetarist Perspective

  • Allan H. Meltzer
Journal of Economic Perspectives
vol. 9, no. 4, Fall 1995
(pp. 49–72)
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Abstract

Monetarist analysis of the transmission process highlights the response of relative prices and real wealth to monetary (and other) impulses. Monetary impulses are neutral in the long run. Short-run nonneutrality reflects uncertainty, incomplete information about the persistence and nature of impulses, fixed contracts, and other institutional detail. Patterns of change in relative prices have some common features but they also differ from cycle to cycle and by countries. This paper compares the monetarist analysis of intermediation to the lending view and presents evidence on the role of relative prices, lending, and other types of intermediation.

Citation

Meltzer, Allan H. 1995. "Monetary, Credit and (Other) Transmission Processes: A Monetarist Perspective." Journal of Economic Perspectives, 9 (4): 49–72. DOI: 10.1257/jep.9.4.49

JEL Classification

  • E52 Monetary Policy
  • E40 Money and Interest Rates: General
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