The standard result in macroeconomic models is that an increase in the stock of government debt has an ambiguous effect on aggregate demand. Models which have derived this result have assumed that all assets are gross substitutes. Some recent work within the framework of mean-variance portfolio...

Intro -- Contents -- Preface -- Introduction -- 1 - Empirical Evidence on Money, Prices, and Output -- 2 - Money-in-the-Utility Function -- 3 - Money and Transactions -- 4 - Money and Public Finance -- 5 - Money, Output, and Inflation in the Short Run -- 6 - Money and the Open Economy -- 7 - The...

In a standard New Keynesian model, a myopic central bank concerned with stabilizing inflation and changes in the output gap will implement a policy under discretion that replicates the optimal, timeless perspective, precommitment policy. By stabilizing output gap changes, the central bank...