Regulation Q, can explain the apparent instability of money demand during the same period. We evaluate the effects of the …

Many economists have worried about changes in the demand for money, since money demand shocks can affect output … variability and have implications for monetary policy. This paper studies the theoretical implications of changes in money demand … for the nonneutrality of money in the limited participation (liquidity) model and the predetermined (sticky) price model …

This paper analyzes the effects of money injections on interest rates and exchange rates in a model in which agents … must pay a Baumol-Tobin style fixed cost to exchange bonds and money. Asset markets are endogenously segmented because this …’ consumption, these money injections affect real interest rates and real exchange rates. We show that the model generates the …

cost to exchange assets and cash. Asset markets are endogenously segmented in that some agents choose to pay the fixed cost … and some do not. When the fixed cost is zero, the model reduces to the standard one in which persistent money injections …, if markets are sufficiently segmented, then persistent money injections decrease interest rates, steepen or even twist …

media of exchange are determined endogenously. Kiyotaki and Wright consider only symmetric, steady-state, pure …

operates and the rate of inflation it experiences. It also explores whether there are other properties of inflation, money, and … basis for our study is price, money, and output data for 15 countries that have operated under both types of monetary … we are able to establish several facts about the differences in inflation, money growth, and output growth between …

feature either memory or money. Memory is defined as knowledge on the part of an agent of the full histories of all agents … with whom he has had direct or indirect contact in the past. Money is defined as an object that does not enter preferences … environment with money is also feasible in the same environment with memory. Depending on the environment, the converse may or may …

We study economies where government currency and electronic money, drawn from interest bearing deposits in private … policies, and the legal restrictions in the form of reserve requirements on financial intermediaries. Electronic money … maximizes households preferences, in which case, electronic money competition may either have no role, or weaken the incentive …