unambiguously leads to accelerating inflation. A policy of maintaining a fixed composition of government liabilities leads to … accelerating (decelerating) inflation if agents have sufficiently high (low) levels of risk aversion. A policy of inflation … targeting produces falling nominal and real interest rates, while a policy of fixing the rate of money growth can easily lead to …

money coexists with a real asset, and no restrictions are imposed on payment arrangements. The liquidity of the real asset …

What implications do 21st century monetary innovations bring for holdings of central bank money and standards of value …? Emerging technologies such as cybercash, e-cash, and smart cards can be expected to reduce demand for central bank money, but … the theoretical framework for monetary policy has not changed. The authors stress three points in this paper: 1) money …

We construct a model in which capital competes with fiat money as a medium of exchange, and establish conditions on … fundamentals under which fiat money can be both valued and socially beneficial. When the socially efficient stock of capital is too … rule, fiat money provides just enough liquidity so that agents choose to accumulate the same capital stock a social planner …

I study random-matching economies where at money coexists with real assets, and no restrictions are imposed on payment … the usefulness of at money. The liquidity of the real asset, as measured by its transaction velocity, is shown to depend …

We revisit classic questions concerning the effects of money on investment in a new framework: a two-sector model where …