... the monetary aggregates. It is inthis sense that money is the nominal anchor of the system.In the current policy framework, where the official interestrate is the policy instrument, both the ... abroad, the path of fiscal policy, the state of the world economy, and the credibility of the monetary policy regime itself.In order to give some broad idea of the size and time-path of the responses ... both of the effects of the equilibrating forces within the model and of the reversalof policy. The course of inflation, in contrast, is little changed during the first year under either of the simulations...