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Optimal control of the money supply
Abstract: Using optimal control theory and a vector autoregressive representation of the relationship between money and interest rates, one can derive a feedback control procedure which defines the best possible tradeoff between money supply fluctuations and interest rate volatility and which could be used to reduce both from their current levels.
https://doi.org/10.21034/sr.82
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Provider: Federal Reserve Bank of Minneapolis
Part of Series: Staff Report
Publication Date: 1983
Number: 82