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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 …
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I study a model of multiple currencies in which sellers can choose the currency they will accept. I provide conditions that are necessary and sufficient to avoid indeterminacy of the exchange rate. Under these assumptions, all stable equilibria have the property that all sellers in the same...
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Does an inflation conservative central bank à la Rogoff (1985) remain desirable in a setting with endogenous fiscal policy? To provide an answer we study monetary and fiscal policy games without commitment in a dynamic stochastic sticky price economy with monopolistic distortions. Monetary...
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aftermath of the 2008 financial crisis. One of our most important innovations is to utilize the Divisia M4 index of money as the …
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