Berentsen, Aleksander; Menzio, Guido; Wright, Randall D. - 2009
We study the long-run relation between money, measured by inflation or interest rates, and unemployment. We first … where both money and unemployment are modeled using explicit microfoundations, integrating and extending recent work in … parameters: the elasticity of money demand, which translates monetary policy to real balances and profits; and the value of …