Showing 1 - 5 of 5
Over millennia, mankind has used hard cash in various forms ranging from shells to gold coins and paper. More recently, cash has become unpopular in political circles, as it effectively restricts states’ power to tax (explicitly or via negative interest rates) or to survey and potentially...
Persistent link: https://www.econbiz.de/10011548098
Monetary policy has significant but overlooked effects on entry and exit of firms. We study optimal monetary stabilization policy in a DSGE model with microfounded money demand and endogenous firm entry. Due to a congestion externality affecting firm entry, the optimal policy deviates from the...
Persistent link: https://www.econbiz.de/10005077874
We construct a dynamic stochastic general equilibrium model to study optimal monetary stabilization policy. Prices are fully flexible and money is essential for trade. Our main result is that if the central bank pursues a price-level target, it can control inflation expectations and improve...
Persistent link: https://www.econbiz.de/10005077878
We study the use of intermediated assets as media of exchange in a neo- classical growth model. An intermediary is delegated control over productive capital and finances itself by issuing claims against the revenue generated by its operations. Unlike physical capital, intermediated claims are...
Persistent link: https://www.econbiz.de/10010705757
this result in a dynamic general equilibrium model where market participants have heterogeneous liquidity needs and where …
Persistent link: https://www.econbiz.de/10008690980