Faced with real and nominal shocks, what should a benevolent central bankdo, …x the money growth rate or target the …-founded model of money. Speci…cally, we produce anoverlapping generations economy in which limited communication and stochas …-tic relocation creates an endogenous transactions role for …at money. We …ndthat when the shocks are real, welfare is higher under …

In models of money with an infinitely-lived representative agent (ILRA models), the optimal monetary policy is almost …, and why. We investigate the welfare properties of monetary policy in a simple OG model under two different types of money … demand specifications and under two alternative assumptions about the generational timing of taxes for money retirement. We …

shown that in a standard monetary economy, this policy rule implies that the price level depends not only on the money stock …, but also on the proportion of debt that is backed with money. Empirical estimates of are obtained for OECD and developing …

of money where spatial separation and random relocation create anendogenous demand for money. We distinguish between … require neg-ative money growth rates, while under shocks to real interest rates it may beeither positive or negative depending …

shown that in a standard monetary economy, this policy rule implies that the price level depends not only on the money stock …, but also on the proportion of debt that is backed with money. Empirical estimates of are obtained for OECD and developing …