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Figure1.

Estim

atedDynamic

Responsetoa

MonetaryPolic

yShock

S

C h i t i

E i h

b

d E

( 1 9 9 9 )

Feder

alfundsrate

GDP

GD

Pdeflator

M2

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g

y

y

(

))

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g

gy

(

)

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Figure3.3:E

ffectsofaMone

taryPolicyShock

(MoneyGrowth

Rule)

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Figure3.4:

EffectsofaTech

nologyShock(M

oneyGrowthRule)

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y

0

0.2

0.4

0.6

0.

8

1

1.2

1.4

1.6

1.8

2

00.2

0.4

0.6

0.81

1.2

1.4

1.6

1.82

2.1

Determinacy

Indeterminacy

F

igure4.1

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y

0

0.5

1

1.5

2

0510

15

20

25

30

35

Determinacy

Indeterminacy

Fig

ure4.2

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g

p

p

y

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Figure5.2

:OptimalRespo

nsestoaPersistentCostPushShock

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F

igure6.1

w

p

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

00.2

0.4

0.6

0.81

1.2

1.4

1.6

1.82

Indeterminacy

Determinacy

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gy

p

+w

0

0.5

1

1.5

2

2.5

3

00.51

1.52

2.53

Determinacy

Indeterminacy

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g

y

g

y

y

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g

gy

p

y

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