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Branch, William A.; McGough, Bruce; Zhu, Mei - In: Theoretical economics : TE ; an open access journal in … 17 (2022) 1, pp. 291-329

models. In environments with hidden state variables, forecast‐model misspecification can break the link between indeterminacy …

Persistent link: https://www.econbiz.de/10012806933

Dirty Money

Camera, Gabriele - 2014

An inter-governmental body is encouraging the replacement of currency with the objective of discouraging illegal economic activities. This policy is analyzed in a search-theoretic model where individuals choose legal or illegal production, settle trades via monetary or costly intermediated...

Persistent link: https://www.econbiz.de/10013039915

Money, Search and Costly Matchmaking

Camera, Gabriele - 2014

double-coincidence matches. Multiple equilibria exist with the extent of costly matching endogenously determined. Money and …

Persistent link: https://www.econbiz.de/10013039918

How long is forever in the laboratory? : three implementations of an infinite-horizon monetary economy

Jiang, Janet Hua; Puzzello, Daniela; Zhang, Cathy - 2021 - Last updated: April 5, 2021

We compare three implementation schemes of an infinite-horizon monetary economy with discounting. Under the standard random termination scheme and its block variation, the economy lasts for an indefinite number of periods and the discounting factor is captured by the probability that the economy...

Persistent link: https://www.econbiz.de/10012493316

Money and Competing Assets under Private Information

Rocheteau, Guillaume - 2008

I study random-matching economies where at money coexists with real assets, and no restrictions are imposed on payment … the usefulness of at money. The liquidity of the real asset, as measured by its transaction velocity, is shown to depend …

Persistent link: https://www.econbiz.de/10012723656

Endogenously (non-)Ricardian beliefs

Branch, William A.; Gasteiger, Emanuel - 2019

This paper develops a theory of endogenously (non-)Ricardian beliefs. That is, whether Ricardian Equivalence holds in an equilibrium depends on endogenous private sector beliefs. The novelty here is a restricted perceptions viewpoint: in complex forecasting environments, agents forecast...

Persistent link: https://www.econbiz.de/10011988962

Exit Strategies for Monetary Policy

Berentsen, Aleksander - 2018

In response to the financial crisis of 2007/08, all major central banks decreased interest rates to historically low levels and created large excess reserves. Central bankers and academics currently discuss how to implement monetary policy, going forward. We find that paying interest on reserves...

Persistent link: https://www.econbiz.de/10012934628

Counterfeiting, Screening and Government Policy

Kang, Kee-Youn - 2018

We construct a search theoretic model of money in which counterfeit money can be produced at a cost, but agents can … screen for fake money also at a cost. Counterfeiting can occur in equilibrium when both costs and the inflation rate are … circulation of counterfeit money differs from the conventional mechanism that holds in the model when counterfeiting does not …

Persistent link: https://www.econbiz.de/10012936218

A Note on Monotone Comparative Statics for Monetary Directed Search Models

Choi, Michael - 2019

, regardless of the choice of matching function. Second, the seller-to-buyer ratio, output level and money demand increase as the …

Persistent link: https://www.econbiz.de/10012904476

Heterogeneous Beliefs and Learning in Forward Looking Economic Models

Barucci, Emilio - 2000

We study a class of forward looking economic models with heterogeneous agents in a bounded rationality setting. The agents employ the same recursive learning rule to update beliefs but are characterized by different memory parameters. The peculiarity of the learning mechanism is that the...

Persistent link: https://www.econbiz.de/10014173987