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Persistent link: https://www.econbiz.de/10000615769
Monetary theory and policy are part of intertemporal public finance. The lecture reviews some interesting recent … the so-called Fiscal Theory of the Price Level, a logically in-consistent theory of the link between the government budget …
Persistent link: https://www.econbiz.de/10012468169
This paper develops a model of a monetary economy in which individual firms are subject to idiosyncratic productivity shocks as well as general inflation. Sellers can change price only by incurring a real menu cost.' We calibrate this cost and the variance and autocorrelation of the...
Persistent link: https://www.econbiz.de/10012468507
We explore the connection between money, banks, and aggregate credit. We start with a simple real' model without money, where banks make loans repayable in goods and depositors hold claims on the bank payable on demand in goods. Aggregate production may be delayed in the economy. If so, we show...
Persistent link: https://www.econbiz.de/10012468624
The paper's arguments include: (1) Medium-of-exchange money will not disappear in the foreseeable future, although the quantity of base money may continue to decline. (2) In economies with very little money (e.g., no currency but bank settlement balances at the central bank), monetary policy...
Persistent link: https://www.econbiz.de/10012468860
This paper develops a model of inflation inertia based on optimizing forward looking staggered price setting in a small open economy. Unlike in current models of sticky prices, transitions to a lower steady state inflation rate take time even if they are fully credible, and they are associated...
Persistent link: https://www.econbiz.de/10012469143
We study the transmission of monetary policy shocks in a model in which realistic heterogeneity in price rigidity interacts with heterogeneity in sectoral size and input-output linkages, and derive conditions under which these heterogeneities generate large real effects. Empirically,...
Persistent link: https://www.econbiz.de/10012480954
We develop a dynamic model of platform economy where tokens derive value by facilitating transactions among users and the platform conducts optimal token-supply policy. Token supply increases when new tokens are issued to finance platform growth and to reward platform owners. Token supply...
Persistent link: https://www.econbiz.de/10012481113
In the aftermath of the Great Recession, there is a growing consensus, even among central bank officials, concerning the limitations of monetary policy. This paper provides an explanation for the ineffectiveness of monetary policy, and in doing so provides a new framework for thinking about...
Persistent link: https://www.econbiz.de/10012455843
A theory of money needs a proper place for financial intermediaries. Intermediaries diversify risks and create inside …
Persistent link: https://www.econbiz.de/10012456146