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This paper presents examination of how a pension policy affects income growth and the inflation rate in a utility model …. Even if the contribution rate of pension increases because of an aging society, an aging society increases income growth … of the pension policy, the optimal growth rate of money stock changes. This result is intuitive because a pay …
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The money stock, in almost every country in the world, does not contract. This paper attempts a welfare-based explanation for this observation. We study an overlapping generations model with return dominated money. A reserve requirement forces agents to hold money. There is a government that has...
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Using an overlapping generations model in which the young save for old age using indexed and nominal government bonds, this paper investigates how optimal indexation is influenced by monetary policy. In order to do so, two monetary policies with markedly different long run implications are...
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