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This paper uses a simple model based on the board game Monopoly to analyze the drivers of house prices and wealth …
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Many of the claims put forth by Modern Monetary Theory (MMT) center around the state's monopoly over its own currency …. In this paper I interrogate the plausibility of two claims: 1) MMT's theory of the price level - that the price level is … building a model of "monopoly money" capable of producing these two outcomes. …
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This paper builds a New Keynesian industry dynamics model for the analysis of macroeconomic fluctuations and monetary policy. A continuum of heterogeneous firms populates the economy, markets are imperfectly competitive and nominal wages are sticky. An expansionary monetary policy shock triggers...
Persistent link: https://www.econbiz.de/10012832245
This study shows that the presence of imperfect competition in the banking system propagates external shocks and amplifies the business cycle. Strategic limit pricing, aimed at protecting retail niches from potential competitors, generates countercyclical bank markups. Markup increments during...
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In many markets, consumers need to sign advance contracts with upfront fees and usage-based payments. Yet they may value consumptions inconsistently over time. They tend to overconsume temptation goods (e.g., credit cards), but underconsume aversion goods (e.g., gym visits), relative to initial...
Persistent link: https://www.econbiz.de/10014030549