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Monetary Equilibria with Monopolistic Competition and Sticky Prices

Nakajima, Tomoyuki; Polemarchakis, Heraklis M. - 2003

We consider a cash-in-advance economy under uncertainty in which monetary policy sets either short-term nominal interest rates or money supplies. We show that both the initial price level and the distribution of the inflation rate up to its expectation are indeterminate, regardless of the degree...

Persistent link: https://www.econbiz.de/10014095577

Monetary policy interdependency in fisher effect: A comparative evidence

Shobande, Olatunji Abdul; Shodipe, Oladimeji Tomiwa - In: Journal of Central Banking Theory and Practice 10 (2021) 1, pp. 203-226

In this paper, we examine the ability of Fisher effect to describe the subjective behaviour of monetary policy responses for nations constrained by global factors. We developed and estimated a simple DSGE model for appraising the consequence of an integrated financial market predictor on...

Persistent link: https://www.econbiz.de/10014558504

Optimal Monetary Policy in a Small Open Economy : A General Equilbirium Analysis

Carlstrom, Charles T.; Fuerst, Timothy S. - 2000

This paper uses a small open economy model to address two outstanding issues in monetary policy: (1) what restrictions on the policy rule ensure that the central bank does not introduce real indeterminacy into the economy, and (2) what is the optimal long run rate of inflation. The small open...

Persistent link: https://www.econbiz.de/10014164139

Money and Indeterminacy Over an Infinite Horizon

Bloise, Gaetano; Drèze, Jacques H.; Polemarchakis, … - 2002

is a non-trivial multiplicity of equilibrium paths of prices of commodities. Determinacy requires that, subject to no …

Persistent link: https://www.econbiz.de/10014117062

Money Creation and Destruction

Faure, Salomon A. - 2017

We study money creation and destruction in today's monetary architecture within a general equilibrium setting. Two …

Persistent link: https://www.econbiz.de/10012950289

Towards money market in general equilibrium framework

Truong Hong Trinh - In: International Journal of Financial Studies : open … 10 (2022) 1, pp. 1-18

point to define the money market and the general equilibrium mechanism of the economy. On this basis, this research seeks a … linking mechanism of the money market with economic activity in the general equilibrium framework. The relationships between … money supply and national outcome, inflation, and price level are studied in three cases: full-employment equilibrium …

Persistent link: https://www.econbiz.de/10013040920

General Equilibrium and the New Neoclassical Synthesis

Herings, P. Jean-Jacques - 2012

We present a general equilibrium model of the new neoclassical synthesis that has the same level of generality as the … formulate the notion of a sticky price equilibrium where all agents form rational expectations on prices for commodities and … whatsoever on nominal equilibrium price levels and that the set of sticky price equilibria has a dimension equal to the number of …

Persistent link: https://www.econbiz.de/10013097609

Disequilibrium Dynamics of the Monetary Economy : A Micro-Founded Synthesis of the Wicksellian Theory of Cumulative Process and the Keynesian Theory of Effective Demand

Iwai, Katsuhito - 2019

expectations triggers a Wicksellian cumulative process that drives the average price further away from equilibrium. (2) In contrast …

Persistent link: https://www.econbiz.de/10012899318

Some Simple Bitcoin Economics

Schilling, Linda - 2019

In an endowment economy, we analyze coexistence and competition between traditional fiat money (Dollar) and cryptocurrency (Bitcoin). Agents can trade consumption goods in either currency or hold on to currency for speculative purposes. A central bank ensures a Dollar inflation target, while...

Persistent link: https://www.econbiz.de/10012899647

Analysis of monetary policy and financial stability : a new paradigm

Goodhart, Charles A. E.; Osorio, Carolina; Tsomocos, … - 2009

short to medium run effects on financial stability are properly captured. -- general equilibrium ; financial fragility …

Persistent link: https://www.econbiz.de/10003923247