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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 … a function of prices paid by government when it spends - and 2) the claim that the cause of deficient effective demand …
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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...
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This paper studies the design of optimal monetary policy (in terms of unconstrained Ramsey allocation) in a framework with sticky prices and matching frictions. Furthermore I consider the role of real wage rigidities. Optimal policy features significant deviations from price stability in...
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