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Money and capital: a quantitative analysis

Aruoba, S. Boragan; Waller, Christopher J.; Wright, Randall - Federal Reserve Bank of St. Louis - 2009

We study the effects of money (anticipated inflation) on capital formation. Previous papers on this topic adopt reduced …-form approaches, putting money in the utility function or imposing cash in advance, but use otherwise frictionless models. We follow a … literature that is more explicit about the frictions making money essential. This introduces several new elements, including a …

Persistent link: https://www.econbiz.de/10005077876

Private and public circulating liabilities

Azariadis, Costas; Bullard, James; Smith, Bruce - Federal Reserve Bank of St. Louis - 2000

, either by themselves, or alongside a stock of outside money. In each case we provide results on the existence and …

Persistent link: https://www.econbiz.de/10005352978

Modeling monetary economies: an equivalence result

Camera, Gabriele; Chien, YiLi - Federal Reserve Bank of St. Louis - 2013

This paper offers a methodological contribution to monetary theory. First, it presents a model economy with cash-in-advance constraints, following the work of Lucas in the early 80’s; then, it specializes the model to preferences and shocks assumed in the Lagos and Wright (2005) framework....

Persistent link: https://www.econbiz.de/10011027345

Determinacy, learnability, and monetary policy inertia

Bullard, James; Mitra, Kaushik - Federal Reserve Bank of St. Louis - 2003

We document that monetary policy inertia can help alleviate problems of indeterminacy and non-existence of stationary equilibrium observed for some commonly-studied monetary policy rules. We also find that inertia promotes learnability of equilibrium. The context is a simple, forward-looking...

Persistent link: https://www.econbiz.de/10005707764

Committing and reneging: a dynamic model of policy regimes.

Haubrich, Joseph G.; Ritter, Joseph A. - Federal Reserve Bank of St. Louis - 1999

Actual policy decisions are made in real time and are not irrevocable. These observations are mundane, but most policy modeling has neglected them. We show that when policy is made in an environment of uncertainty, costs of switching policies give the option to wait positive value. This insight...

Persistent link: https://www.econbiz.de/10005490988