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Liquidity Provision, Interest Rates, and Unemployment
Rocheteau, Guillaume; Rodriguez-Lopez, Jose Antonio - Department of Economics, University of California-Irvine - 2013
This paper develops a model of the public and private provision of liquidity and its relation to unemployment. We … a result, the real interest rate is endogenous and depends on the financing needs of firms, the liquidity needs of OTC …-traders, and the public supply of liquidity. We show that under some conditions the policymaker faces a trade-off between the …
Persistent link: https://www.econbiz.de/10010959978
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Aggregate Unemployment and Household Unsecured Debt
Bethune, Zachary; Rocheteau, Guillaume; Rupert, Peter - In: Review of Economic Dynamics 18 (2015) 1, pp. 77-100
borrowing limits depend on the sophistication of the financial system, the frequency of liquidity shocks, and the rate of return …
Persistent link: https://www.econbiz.de/10011160660
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Financial frictions, the housing market, and unemployment
Branch, William A.; Petrosky-Nadeau, Nicolas; … - Federal Reserve Bank of San Francisco - 2014
We develop a two-sector search-matching model of the labor market with imperfect mobility of workers, augmented to incorporate a housing market and a frictional goods market. Homeowners use home equity as collateral to finance idiosyncratic consumption opportunities. A financial innovation that...
Persistent link: https://www.econbiz.de/10011082685
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Nominal Uniqueness and Money Non-neutrality in the Limit-Price Exchange Process.
Giraud, Gaël; Tsomocos, Dimitrios P. - Centre d'Économie de la Sorbonne, Université Paris 1 … - 2010
nominal variables. Money is not neutral, either in the short-run or long-run, and a localized version of the quantity theory … towards Pareto optimal rest-points. Below this growth rate, the economy enters a (sub-optimal) liquidity trap where monetary … policy is ineffective ; above this threshold inflation rises. Finally, market liquidity, measured through the speed of real …
Persistent link: https://www.econbiz.de/10008461118
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The cost of inflation: A mechanism design approach
Rocheteau, Guillaume - In: Journal of Economic Theory 147 (2012) 3, pp. 1261-1279
I apply mechanism design to quantify the cost of inflation that can be attributed to monetary frictions alone. In an environment with pairwise meetings, the money demand that is consistent with an optimal, incentive feasible allocation takes the form of a continuous correspondence that can fit...
Persistent link: https://www.econbiz.de/10010576554
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On the coexistence of money and higher-return assets and its social role
Hu, Tai-Wei; Rocheteau, Guillaume - In: Journal of Economic Theory 148 (2013) 6, pp. 2520-2560
This paper adopts mechanism design to investigate the coexistence of fiat money and higher-return assets. We consider an economy with pairwise meetings where fiat money and risk-free capital compete as means of payment, as in [28]. The trading mechanism in pairwise meetings is chosen among all...
Persistent link: https://www.econbiz.de/10011043029
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Weighted Monetary Aggregates: An Empirical Approach.
Alonso, Francisco; Pagés, Jorge Martínez; Jurado, … - Banco de España - 1996
result in liquidity growth that is a stable leading indicator of nominal expenditure. …
Persistent link: https://www.econbiz.de/10005155287
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Liquidity, Bargaining, and Multiple Equilibria in a Search Monetary Model
Shi, Shouyong - China Economics and Management Academy, Central … - 2000
multiple, self-fulfilling monetary steady states. When liquidity is interpreted as the number of transactions, the steady state … with higher aggregate activities has higher liquidity. In both steady states, an increase in the money growth rate …
Persistent link: https://www.econbiz.de/10009205029
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A Model of Interbank Settlement
Lester, Benjamin - Society for Economic Dynamics - SED - 2006
A settlement system is a set of rules and procedures that govern when and how funds are transferred between banks. Perhaps the most crucial feature of a settlement system is the frequency with which settlement occurs. On the one hand, a higher frequency of settlement limits the risk of default...
Persistent link: https://www.econbiz.de/10005069347
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Weighted Monetary Aggregates: An Empirical Approach.
Alonso, F.; Pages, J.M.; Jurado, M.P. - 1996
result in liquidity growth that is a stable leading indicator of nominal expenditure. …
Persistent link: https://www.econbiz.de/10005618405