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. …

try to assess the relative importance of money against interest rate in explaining the evolution of the price level in six …

In this paper, I provide a rationale for why money should earn interest; or, what amounts to the same thing, why risk …-free claims to non-interest-bearing money should trade at discount. I argue that interest-bearing money is essential when … individual money balances are private information. The analysis also suggests one reason for why it is sufficient (as well as …

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 …

monetary exchange and credit. Imperfect memory makes money useful, but it also permits theft to go undetected, and therefore … theft, and the optimal money growth rate tends to rise as the cost of theft falls. …

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 …