rate. Money’s role in monetary policy has been tertiary, at best. Indeed, several influential economists have suggested … that money is irrelevant for monetary policy. They suggest that central banks can control inflation by (i) controlling a … rate in order to exert greater control over longer-term rates. I offer an alternative perspective: namely, that money is …

inside and outside money does and does not allow the economy to achieve a first-best allocation of resources. We also study …

substantially changes the dynamics in the model, allowing agents to significantly smooth consumption and reduce the movements in …