The rate-of-return-dominance puzzle asks why low-return assets, like fiat money, are used in actual economies given … monetary models which arbitrarily restrict the marketability properties of alternative assets to make money valuable are … difficult to assess. In this paper, I provide a framework in which fiat money has value in equilibrium, even though a higher …

DSGE model. Considering SVAR models in which either the interest rate is predetermined for money or these two monetary … estimated monetary policy rule is strongly sensitive to the identification scheme. This suggests that the way money is …

prices, and the extension of the quantitative equation of money to transactions on assets does not stabilize the money …