foreign demand for its currency. In the absence of such demand, the model implies that the Friedman rule--deflation at the … foreign demand for domestic currency is taken into account, the Friedman rule ceases to be Ramsey optimal. Calibrated versions … of the model that match the range of empirical estimates of the size of foreign demand for U.S. currency deliver Ramsey …

foreign demand for its currency. In the absence of such demand, the model implies that the Friedman rule--deflation at the … foreign demand for domestic currency is taken into account, the Friedman rule ceases to be Ramsey optimal. Calibrated versions … of the model that match the range of empirical estimates of the size of foreign demand for U.S. currency deliver Ramsey …

We develop a dual currency search model to study equilibrium currency exchange and the determination of nominal … numerical methods to solve for the steady-state distributions of currency portfolios, nominal exchange rates and value functions …. When one of the currencies is 'risky', equilibria exist in which the safe currency trades for multiple units of the risky …