Narrow search
Showing 1 - 10 of 3,031
Cover Image
The Demand for Money, Financial Innovation, and the Welfare Cost of Inflation : an Analysis with Household Data
Attanasio, Orazio; Guiso, Luigi; Jappelli, Tuillo - 2021
How far can shoe-leather go in explaining the welfare cost of inflation? Using a unique set of microeconomic data on … welfare cost of inflation analogous to Bailey's triangle, but based on a rigorous microeconomic framework. The welfare cost of … inflation varies considerably within the population, but never turns out to be very large (about 0.1 percent of consumption or …
Persistent link: https://www.econbiz.de/10013220397
Cover Image
Price Expectations, Foreign Exchange and Interest Rates, and Demand for Money in an Open Economy
Arango, Sebastian; Nadiri, M. Ishaq - 2021
Traditional studies on demand for money have often ignored influence of foreign monetary developments. The literature on international capital mobility, on the other hand, focuses on the impact of adjustments in international reserves on domestic money supply with the implicit assumption that...
Persistent link: https://www.econbiz.de/10013221990
Cover Image
Exchange Rate Determination and the Demand for Money
Hakkio, Craig S. - 2021
This paper examines the conventional monetary equation of exchange rate determination. Under certain exogeneity conditions, one can write the price level, at home and abroad, as the ratio of the nominal money supply to the demand for real money balances. Then, since the exchange rate is the...
Persistent link: https://www.econbiz.de/10013248579
Cover Image
Sticky Prices Versus Monetary Frictions : An Estimation of Policy Trade-Offs
Aruoba, S. Borağan - 2010
its money demand properties and determine the optimal long-run inflation rate that trades off the New Keynesian distortion …
Persistent link: https://www.econbiz.de/10012757582
Cover Image
The 1981-82 Velocity Decline : A Structural Shift in Income or Money Demand?
Gordon, Robert J. - 2010
The velocity of both M1 and M2 appears to have experienced a sharp and persistent downward shift during 1981 and 1982. The implications of this shift are reexamined within the context of the previous literature on quarterly econometric equations explaining the demand for money. The traditional...
Persistent link: https://www.econbiz.de/10012760333
Cover Image
Short-Run Money Demand
Ball, Laurence - 2021
The paper estimates a long-run demand function for M1, using U.S. data for 1959-1993. This paper interprets deviations from this long-run relation with Goldfeld's partial adjustment model. A key innovation is the choice of the interest rate in the money demand function. Most previous work uses a...
Persistent link: https://www.econbiz.de/10013236795
Cover Image
On the Sluggish Response of Prices to Money in an Inventory-Theoretic Model of Money Demand
Alvarez, Fernando; Atkeson, Andrew; Edmond, Chris - 2021
We exposit the link between money, velocity and prices in an inventory-theoretic model of the demand for money and explore the extent to which such a model can account for the short-run volatility of velocity, the negative correlation of velocity and the ratio of money to consumption, and the...
Persistent link: https://www.econbiz.de/10013227900
Cover Image
Money and Interest Rates in the United States During the Great Depression
Basile, Peter - 2010
This paper reexamines the debate over whether the United States fell into a liquidity trap in the 1930s. We first review the literature on the liquidity trap focusing on Keynes's discussion of "absolute liquidity preference" and the division that soon emerged between Keynes, who believed that a...
Persistent link: https://www.econbiz.de/10013139970
Cover Image
Persistent Liquidity Effects and Long Run Money Demand
Alvarez, Fernando - 2011
We present a monetary model in the presence of segmented asset markets that implies a persistent fall in interest rates after a once and for all increase in liquidity. The gradual propagation mechanism produced by our model is novel in the literature. We provide an analytical characterization of...
Persistent link: https://www.econbiz.de/10013118840
Cover Image
Exchange Arrangements Entering the 21st Century : Which Anchor Will Hold?
Ilzetzki, Ethan - 2017
This paper provides a comprehensive history of anchor or reference currencies, exchange rate arrangements, and a new measure of foreign exchange restrictions for 194 countries and territories over 1946-2016. We find that the often-cited post-Bretton Woods transition from fixed to flexible...
Persistent link: https://www.econbiz.de/10012963738