"We analyze optimal monetary policy in an endogenous sticky price model. Similar models with exogenous sticky prices … explain the variation across time and countries of inflation patterns. In our model's equilibrium, profit differentials … between sticky price firms and flexible price firms are small. Also, the gain from revising prices for sticky prices firms is …

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 … to potential output and/or velocity lead to the rejection of such models of the price level, but their first …

general equilibrium models with sticky information. ; Earlier title: Inflation and money: a puzzle … money growth is essentially zero. We investigate whether standard monetary models driven by monetary shocks are consistent … with the empirical facts. We find that neither the new Keynesian sticky-price model nor the sticky-information model can …

pledged as collateral for a loan. We develop a dynamic general equilibrium monetary model where an “asset shortage” motivates …

equivalence result is extended to stationary equilibrium under non-competitive pricing; in both models, allocations depend on a … free parameter controlling price markups. …

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. …

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 …

tends to understate the value of money as an indicator for monetary policy. …

equilibrium account of the transition between barter and fiat money regimes. The explanation relies on the intervention of a self …-interested government which must be able to promise credibly to limit the issue of money. To achieve credibility, the government must offset … the benefits of seigniorage by internalizing some of the macroeconomic externalities generated by the issue of fiat money …