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frictions giving rise to money as a medium of exchange are explicitly modeled. The framework is a three period OLG model where … production efficiency in the search market. In the absence of record-keeping, the government uses flat money as a substitute for … distortionary taxation of money may be needed as part of the optimal policy even if lump-sum taxes are available. …
Persistent link: https://www.econbiz.de/10005077872
We study the effects of money (anticipated inflation) on capital formation. Previous papers on this topic adopt reduced …-form approaches, putting money in the utility function or imposing cash in advance, but use otherwise frictionless models. We follow a … literature that is more explicit about the frictions making money essential. This introduces several new elements, including a …
Persistent link: https://www.econbiz.de/10005077876
stabilization policy in a DSGE model with microfounded money demand and endogenous firm entry. Due to a congestion externality …
Persistent link: https://www.econbiz.de/10005077874
fully flexible and money is essential for trade. Our main result is that if the central bank pursues a price-level target … policy involves smoothing nominal interest rates which effectively smooths consumption across states. …
Persistent link: https://www.econbiz.de/10005077878
I use the monetary version of the neoclassical growth model developed by Aruoba, Waller and Wright (2008) to study the properties of the model when there is exogenous growth. I first consider the planner's problem, then the equilibrium outcome in a monetary economy. I do so by first using...
Persistent link: https://www.econbiz.de/10005077879
May 30, 2012. "Demographics, Redistribution, and Optimal Inflation," with Carlos Garriga and Christopher J. Waller. Presented by Christopher Waller at the 2012 BOJ-IMES Conference Demographic Changes and Macroeconomic Performance.
Persistent link: https://www.econbiz.de/10010727313
. Unlike physical capital, intermediated claims are assumed to be liquid-they constitute a form of asset-backed money. The … strictly positive inflation. While it is also possible to implement the first-best by introducing at money and a lump- sum tax …
Persistent link: https://www.econbiz.de/10010705757
money market rate and the volumes traded at the ECB’s deposit and lending facilities in response to the recent financial …
Persistent link: https://www.econbiz.de/10008690980