COWLES FOUNDATION FOR RESEARCH IN ECONOMICS
AT YALE UNIVERSITY

Box 208281
New Haven, CT 06520-8281

COWLES FOUNDATION DISCUSSION PAPER NO. 1071

Is Monetary Policy Becoming Less Effective?

Ray C. Fair

April 1994

This paper estimates the amount by which the effectiveness of monetary policy in changing real output has declined due to the increased size of the federal government debt.