recognition to the intertemporal nature of households' saving decisions. Like traditional IS-LM, however, the optimizing version … tends to understate the value of money as an indicator for monetary policy. …

public goods generating private utility. We find that lack of fiscal commitment gives rise to excessive public spending. The …

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 …

This paper establishes the existence of equilibria for environments in which outside money is issued competitively …. Such equilibria are typically believed not to exist because of a classic overissue problem: if money is valued in … equilibrium, an issuer produces money until its value is driven to zero. By backward induction, money cannot have value in the …

In the P-star model the price level is determined by the money stock per unit of potential output and the long …-run equilibrium level of the velocity of money. This article applies this model to Austria. Problems in identifying permanent shocks …-difference version is not so suspect. While evidence is found of a long-run relationship between Austria inflation and money growth, even …

money growth is essentially zero. We investigate whether standard monetary models driven by monetary shocks are consistent … general equilibrium models with sticky information. ; Earlier title: Inflation and money: a puzzle …

inflation have changed several times. Each of the changes in the measures of money was sparked by a breakdown in the fit of … empirical money demand functions. The Federal Reserve's strategy following these breakdowns has been to redefine money by simply … empirically stable money demand function. Unfortunately, while a stable demand for money is a worthwhile ultimate goal, history …