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Money and capital as competing media of exchange

Lagos, Ricardo; Rocheteau, Guillaume - Federal Reserve Bank of Minneapolis - 2004

We construct a model where capital competes with fiat money as a medium of exchange, and we establish conditions on fundamentals under which fiat money can be both valued and socially beneficial. When the socially efficient stock of capital is too low to provide the liquidity agents need, they...

Persistent link: https://www.econbiz.de/10005712377

Time-to-build, time-to-plan, habit-persistence, and the liquidity effect

Edge, Rochelle M. - Federal Reserve Board (Board of Governors of the … - 2000

The general inability of sticky-price monetary business cycle models to generate liquidity effects has been noted in the recent literature by authors such as Christiano (1991), Christiano and Eichenbaum (1992a, 1995), King and Watson (1996), and Bernanke and Mihov (1998b). This paper develops a...

Persistent link: https://www.econbiz.de/10005712685

Liquidity effects, monetary policy, and the business cycle

Christiano, Lawrence J.; Eichenbaum, Martin - Federal Reserve Bank of Minneapolis - 1992

This paper presents new empirical evidence to support the hypothesis that positive money supply shocks drive short-term interest rates down. We then present a quantitative, general equilibrium model which is consistent with this hypothesis. The two key features of our model are that (i) money...

Persistent link: https://www.econbiz.de/10005712939

Liquidity and real activity in three monetary models

Schlagenhauf, Don E.; Wrase, Jeffrey M. - Federal Reserve Bank of Minneapolis - 1992

This paper investigates interest rate determination and evolutions of nominal and real variables in alternative monetary, general equilibrium models. Three approaches to characterizing monetary transactions services are utilized: a cash-in-advance approach, in which agents face cash constraints...

Persistent link: https://www.econbiz.de/10005712941

Enhancing the liquidity of U.S. Treasury securities in an era of surpluses - commentary

Parkhurst, Charles H. - In: Economic Policy Review (2000) Apr, pp. 123-125

Persistent link: https://www.econbiz.de/10005712968

Economizing on liquidity with deferred settlement mechanisms

Johnson, Kurt; McAndrews, James J.; Soramaki, Kimmo - In: Economic Policy Review (2004) Dec, pp. 51-72

Credit extensions to banks using the Fedwire Funds Service-the Federal Reserve's real-time gross settlement (RTGS … methods of settling Fedwire payments in reducing intraday credit extensions. The authors simulate three deferred settlement … reduce daylight credit extensions while modestly delaying the average time of payment settlement. Moreover, certain features …

Persistent link: https://www.econbiz.de/10005712969

The effect of interest rate options hedging on term-structure dynamics

Kambhu, John; Mosser, Patricia C. - In: Economic Policy Review (2001) Dec, pp. 51-70

Market participants and policymakers closely monitor movements in the yield curve for information about future economic fundamentals. In several recent episodes, however, disruptions to market liquidity have affected the short-term dynamics of the curve independently of fundamentals. This...

Persistent link: https://www.econbiz.de/10005713014

Liquidity and public policy

Axilrod, Stephen H. - In: Federal Reserve Bulletin (1961) Oct, pp. 1161-1177

Persistent link: https://www.econbiz.de/10005713516

Issuance of a joint statement on temporary balance sheet growth at some banking organizations

In: Federal Reserve Bulletin (1999) Nov, pp. 730-731

Persistent link: https://www.econbiz.de/10005717040

The changing character of liquidity and liquidity risk management: a regulator's perspective

Decker, Paul A. - In: Emerging Issues (2000) Apr

Persistent link: https://www.econbiz.de/10005717085