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goods trade model which also captures trade through time in the form of inside money as used in macro literature on one good … way. -- Inside money ; general equilibrium ; Nash equilibrium ; numerical analysis ; tariff rate …
Persistent link: https://www.econbiz.de/10003806727
This paper shows that price rigidity evolves in an economy populated by imperfectly rational agents who experiment with alternative rules of thumb. In the model, firms must set their prices in face of aggregate demand shocks. Their payoff depends on the level of aggregate demand, as well as on...
Persistent link: https://www.econbiz.de/10011409938
In monetary models in which agents are subject to trading shocks there is typically an ex-post inefficiency in that some agents are holding idle balances while others are cash constrained. This inefficiency creates a role for financial intermediaries, such as banks, who accept nominal deposits...
Persistent link: https://www.econbiz.de/10003297591
Employing representative data from the U.S. Survey of Consumer Payment Choice, we disprove the hypothesis that cryptocurrency investors are motivated by distrust in fiat currencies or regulated finance. Compared with the general population, investors show no differences in their level of...
Persistent link: https://www.econbiz.de/10012619271
The present work offers a review on two divergent schools of thought regarding the subject of money and highlights why … understanding it is important to grasp the workings and nature of the concept of money. We adopt a spontaneous order perspective on … social institutions, considering money as one. Such framework allows for the construction of axioms from which we formulate …
Persistent link: https://www.econbiz.de/10013170942
methods, and study how each subject makes decisions both on behalf of own money and on behalf of another individual’s money …. We find a weak tendency of lower risk-taking with others' money compared to own money. However, subjects believe that … other participants take more risk with other people's money than with their own. At the same time, subjects on average think …
Persistent link: https://www.econbiz.de/10011615822
This profile of Jean-Michel Grandmont is based on several interviews we had with him between September 2016 and April 2017. The interviews took place at our CREST offices, located at that time in Malakoff, just south of Paris. The objective of the profile is twofold. First, we trace the career...
Persistent link: https://www.econbiz.de/10011853287
not created due to a hold-up problem. Monetary expansion increases buyers' money holdings, and then, dealers are willing …
Persistent link: https://www.econbiz.de/10014467370
In this paper we develop a general model of an imperfectly competitive small open economy. There is a traded and non-traded sector, whose outputs are combined in order to produce a single final good that can be either consumed or invested. We make general assumptions about preferences and...
Persistent link: https://www.econbiz.de/10011399714
Should the government run fiscal deficits in response to an adverse external shock that warrants transfer of resources from production of non-traded to traded goods? This paper considers normative fiscal policy implications of sectoral adjustment costs in a two-sector model with overlapping...
Persistent link: https://www.econbiz.de/10011400804