Monetarism is that solid microfoundations are critical for understanding monetary issues. We survey recent papers on monetary … theory, showing how they build on common foundations. We then lay out a tractable benchmark version of the model that allows … inflation, the relationship between money and capital accumulation, and the Phillips curve. We also extend the benchmark model …

-pricing theory, is calibrated to analyze the effects of monetary policy and financial innovation. We show that inflation can raise … output, employment and investment, plus improve housing and stock markets. For the baseline calibration, optimal inflation is …

money may lead to a transitory increase in seigniorage, the retirement of government debt, and lower inflation in both the … low money growth is conditional on inflation remaining below its previous level …