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Short-run dynamics in a search-theoretic model of monetary exchange

Chiu, Jonathan; Molico, Miguel - 2020 - Last updated: November 18, 2020

shocks. Money is injected through lump-sum transfers, which have redistributive and persistent effects on output and prices … inflation (money growth), the bigger the impact effect of a shock of a given size but the smaller its cumulative effect. These …

Persistent link: https://www.econbiz.de/10012321819

Endogenously segmented asset market in an inventory theoretic model of money demand

Chiu, Jonathan (contributor) - 2007

This paper studies the effects of monetary policy in an inventory theoretic model of money demand. In this model …, agents keep inventories of money, despite the fact that money is dominated in rate of return by interest bearing assets … segmentation models in the literature, the timings of money transfers are endogenous. By allowing agents to choose the timings of …

Persistent link: https://www.econbiz.de/10003560555

Gazing at r-star : a hysteresis perspective

Beaudry, Paul; Kartashova, Katya; Meh, Césaire Assah - 2023 - Last updated: January 12, 2023

Many explanations for the decline in real interest rates over the last 30 years point to the role that population aging or rising income inequality plays in increasing the long-run aggregate demand for assets. Notwithstanding the importance of such factors, the starting point of this paper is to...

Persistent link: https://www.econbiz.de/10013482643

The role of bank capital in the propagation of shocks

Meh, Césaire Assah (contributor); Moran, Kevin (contributor) - 2008

Recent events in financial markets have underlined the importance of analyzing the link between the financial health of banks and real economic activity. This paper contributes to this analysis by constructing a dynamic general equilibrium model in which the balance sheet of banks affects the...

Persistent link: https://www.econbiz.de/10003773059

Real effects of price stability with endogenous nominal indexation

Meh, Césaire Assah; Quadrini, Vincenzo; Terajima, Yaz - 2009

We study a model with repeated moral hazard where financial contracts are not fully indexed to inflation because nominal prices are observed with delay as in Jovanovic & Ueda (1997). More constrained firms sign contracts that are less indexed to the nominal price and, as a result, their...

Persistent link: https://www.econbiz.de/10003852858

Bank leverage regulation and macroeconomic dynamics

Christensen, Ian; Meh, Césaire Assah; Moran, Kevin - 2011

This paper assesses the merits of countercyclical bank balance sheet regulation for the stabilization of financial and economic cycles and examines its interaction with monetary policy. The framework used is a dynamic stochastic general equilibrium model with banks and bank capital, in which...

Persistent link: https://www.econbiz.de/10009728167

Financial intermediation, liquidity and inflation

Chiu, Jonathan (contributor); … - 2008

This paper develops a search-theoretic model to study the interaction between banking and monetary policy and how this interaction affects the allocation and welfare. Regarding how banking affects the welfare costs of inflation: First, we find that, with banking, inflation generates smaller...

Persistent link: https://www.econbiz.de/10003790575

Uncertainty, inflation, and welfare

Chiu, Jonathan (contributor); Molico, Miguel (contributor) - 2008

money demand and the distribution of money holdings across households, and study the effects of inflation under the implied …

Persistent link: https://www.econbiz.de/10003711687

Liquidity, redistribution, and the welfare cost of inflation

Chiu, Jonathan (contributor); Molico, Miguel (contributor) - 2007

segmentation, as well as the distribution of money. We find that, compared to the traditional estimates based on a representative …

Persistent link: https://www.econbiz.de/10003560521

Central bank haircut policy

Chapman, James; Chiu, Jonathan; Molico, Miguel - 2010

We present a model of central bank collateralized lending to study the optimal choice of the haircut policy. We show that a lending facility provides a bundle of two types of insurance: insurance against liquidity risk as well as insurance against downside risk of the collateral. Setting a...

Persistent link: https://www.econbiz.de/10008659919