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The monetary economy has properties that cannot be analyzed using the tools of today's dynamic general equilibrium analysis. Keynes's economics, far from being an aberration in the otherwise orderly evolution of modern macroeconomics from Adam Smith's ideas about the invisible hand, was a major...
Persistent link: https://www.econbiz.de/10010291902
The general equilibrium model with incomplete financial markets (GEI) is extended by adding fiat money, fiscal and … monetary policy and a cash-in-advance constraint. The central bank either pegs the interest rate or money supply while the …
Persistent link: https://www.econbiz.de/10010264772
implications of our model for monetary economics. When a central bank increases the money supply, it must inject the money … somewhere in the economy. We demonstrate that the agent closest to the location where money is injected is better off, and the …. Symmetrically, any decrease in the money supply redistributes purchasing power in the other direction. We also outline the testable …
Persistent link: https://www.econbiz.de/10010316933
view, money is a neuronally anchored metaphor for emotions relating with social exchange and reciprocity. Money as a meme … population-level interactions. I apply this framework on the case of money, analyzing the emotions that go along with the use of … money, and presenting a stylized account of the emergence of money in terms of the naturalized Searle-Aoki model. In this …
Persistent link: https://www.econbiz.de/10009382374
We construct a monetary economy in which agents face aggregate demand shocks and heterogeneous idiosyncratic preference shocks. We show that, even when the Friedman rule is the best interest rate policy the central bank can implement, not all agents are satiated at the zero lower bound and...
Persistent link: https://www.econbiz.de/10011338171
Prior to the financial crisis mainstream monetary policy practice had become disconnected from money. We outline the … basic rationale for this development using a simple model of money and credit in which we explore the conditions under which … money matters directly for the conduct of policy. Then, drawing on Goodfriend and McCallum's (2007) DSGE model, we examine …
Persistent link: https://www.econbiz.de/10009744620
-free asset over time. The four models specify this single asset to be private bonds, public bonds, public money, or private money … refers to the limits on private issue of money or bonds, or the supplies of publicly issued bonds or money.) …
Persistent link: https://www.econbiz.de/10012770986
to the identity of money. The identity of an individual unit of exchange is increasingly important as cash becomes less …The fungibility of money is a characteristic which contributes to the quality of money. Fungibleness is itself related … to the technical ability to associate a unit of currency with its past instances of exchange. This history is analogous …
Persistent link: https://www.econbiz.de/10012851904
around quantum computing and quantum money. We proceed in three steps. First, we discuss basic concepts in quantum computing …-cloning theorem. Second, we provide an overview of quantum money, an early invention of the quantum communication literature that has … recently been partially implemented in an experimental setting. One form of quantum money offers the privacy and anonymity of …
Persistent link: https://www.econbiz.de/10012385031
We propose a monetary model with endogenous credit market participation to study the impact of financial inclusion on inequality and welfare. We find that consumption inequality results from differences in agents' decision to access financial services. This heterogeneity generates a pecuniary...
Persistent link: https://www.econbiz.de/10012052590