. We report that the different approach to modeling money - reduced-form vs. explicit role - neither induces theoretical …. To illustrate, when cash prices are equally distorted in both models equally large welfare costs of inflation are … mechanism that governs cash transactions, not the explicit microfoundation of money. …

This paper applies ARDL and Nonlinear ARDL models to long-term inflation targeting policy mechanisms in the United … States and China to assess the impact of oil price dynamics and asymmetries on inflation expectations in the two countries … changes on inflation expectations, and further provide a theoretical basis for the empirical results. We use data from 2010 to …

inflation, the relationship between money and capital accumulation, and the Phillips curve. We also extend the benchmark model … body of recent work on money, banking, payments systems, asset markets, and related topics. A key principle in New … Monetarism is that solid microfoundations are critical for understanding monetary issues. We survey recent papers on monetary …

Irving Fisher's encounter with the Quantity theory of Money began in the 1890s, during the debate about bimetallism …, and reached its high point in 1911 with the publication of The Purchasing Power of Money. His most important refinement of … recursive interaction with inflation as integral to it. This treatment underlay both his 1920s work on the business cycle as a …

countries. Second, inflation acts as a regressive tax when a nominal asset other than money is held. Third, the magnitude of the …I calibrate the microfounded model in Boel and Camera (2009) to quantify the redistributive effects of inflation for a … financial assets. Second, I account for structural breaks when estimating money demand. I find that several results hold for the …

Irving Fisher's encounter with the Quantity theory of Money began in the 1890s, during the debate about bimetallism …, and reached its high point in 1911 with the publication of The Purchasing Power of Money. His most important refinement of … recursive interaction with inflation as integral to it. This treatment underlay both his 1920s work on the business cycle as a …

ingredient to model. In fact, I found that the estimated premium is a very powerful predictor of inflation. It overcomes, in …

We analyze optimal monetary policy in a sticky pricemodel where the central bank supplies money outrightvia asset … purchases and lends money temporarily againstcollateral. The terms of central bank lending affect ra-tioning of money and impact … the first bestlong-run allocation, which is impossible if money weresupplied in a lump-sum way (as commonly assumed …

This study revisits and tests empirically the Portfolio Theory of Inflation (PTI), which analyzes how the effectiveness … (Bossone, The portfolio theory of inflation and policy (in)effectiveness, 2019). The PTI shows that when an economy is heavily … and policies aimed to stimulate output growth dissipate into domestic currency depreciation and higher inflation, with …

regime during a deceleration in economic activity and with headline and core inflation remaining well below the FOMC's 2 … percent inflation target. Moreover, both short- and long-term inflation expectations were drifting lower. These developments …