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There are two general ways in which the role of fiat money has been introduced in the standard monetary search … centralized institution that favors the use of fiat money through specific transaction policies. We carry out a similar exercise … conditions for which there exist equilibria with circulating fiat money and evaluate the main differences with the results …
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Fungibility of money is a central principle in economics. It implies that any unit of money is substitutable for …, incentivized setup many subjects do not treat money as fungible. When a label is attached to a part of their budget, subjects …
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Fungibility of money is a central assumption in the theory of consumer choice: any unit of money is substitutable for … that even in a simple, incentivized setup many subjects do not treat money as fungible. When a label is attached to a part …
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While consumption habits have been utilised as a means of generating a hump shaped output response to monetary policy shocks in sticky-price New Keynesian economies, there is relatively little analysis of the impact of habits (particularly, external habits) on optimal policy. In this paper we...
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