Existing methods for estimating nonlinear dynamic models are either highly computationally costly or rely on local approximations which often fail adequately to capture the nonlinear features of interest. I develop a new method, the discretization filter, for approximating the likelihood of...

‘State of the art’ monetary theory was unable to anticipate or understand the global financial crisis because it rested on microeconomic foundations that precluded any meaningful role for money, finance or banking. These analytical and conceptual flaws have been known for a long...

Cash-in-advance models usually require agents to reallocate money and bonds in fixed periods. Every month or quarter, for example. I show that fixed periods underestimate the welfare cost of inflation. I use a model in which agents choose how often they exchange bonds for money. In the benchmark...

Los modelos de búsqueda monetaria, gracias a los trabajos teóricos recientes, no sólo permitenentender el intercambio como un fenómeno monetario, sino también dar respuesta a interrogantesde política monetaria como son los costos de inflación. El presente trabajo es un aporte a los...

The paper attempts to formulate, in the context of an Islamic economy, a practical model through which monetary management could be practiced in the absence of interest rate. Having developed the model, it has also been applied to the case of Pakistan to simulate a complete process of monetary...

The idea of an exogenous money supply —controlled entirely through central bank interventions— was a fundamental tenet of monetarism and New Classical economics. Post Keynesians have developed an extensive literature arguing that the money supply is in fact endogenous —that market forces...

The idea of an exogenous money supply —controlled entirely through central bank interventions— was a fundamental tenet of monetarism and New Classical economics. Post Keynesians have developed an extensive literature arguing that the money supply is in fact endogenous —that market forces...

Geçen Aralık ayında uygulamaya sokulan para politikası karışımı, yeni bir dönemin başlangıcı oldu, Merkez Bankası para politikası uygulamasında bir nevi paradigma değişikliğine gitti. Merkez Bankası bir yandan bu çıkışıyla çok takdir edilecek bir şey yaptı: önemli bir...

In this paper I construct a search monetary model with capital accumulation where money and goods are both divisible. Agents in matches determine the terms of trade through a sequential bargaining process and they face trading restrictions that require the quantity of money traded not to exceed...