Author: Jong-Yann LeePublisher:
ISBN:
Category : Business cycles
Languages : en
Pages : 246
Book Description
Indeterminacy and Equilibrium Models of Money
Author: Jong-Yann LeePublisher:
ISBN:
Category : Business cycles
Languages : en
Pages : 246
Book Description
On the Role of Paper Money in General Equilibrium Models with Incomplete Markets
Author: Atsushi KajiiGeneral Equilibrium Models of Monetary Economies
Author: Ross M. StarrPublisher: Academic Press
ISBN: 1483273512
Category : Business & Economics
Languages : en
Pages : 364
Book Description
General Equilibrium Models of Monetary Economies: Studies in the Static Foundations of Monetary Theory is a collection of essays that addresses the integration of the theory of money and the theory of value by using a mathematical general equilibrium theory. The papers discuss monetary theory, microeconomic theory, bilateral trade, transactions costs, intertemporal allocation, and the value of money. The Arrow-Debreu model of Walrasian general equilibrium theory provides a framework to represent money as a device for facilitating trade among economic agents without the use of money as a medium of exchange and as a store of value. The essays analyze the rationale for using a medium of exchange, for using a store of value, and for holding of idle balances in equilibrium. The essays show that by explicit modeling of the structure and difficulties of trade, a powerful class of models which deny money and finance a role in the economy, has by itself shown to have provided the foundation for the structures of trade. The collection will prove helpful for economists, statistician, mathematicians, students or professors of economics and business.
On the Real Determinacy and Indeterminacy of Stationary Equilibria in Monetary Models
Author: Kazuya KamiyaAssessing Dsge Models with Capital Accumulation and Indeterminacy
Author: Mr.Vadim KhramovPublisher: International Monetary Fund
ISBN: 1475502354
Category : Business & Economics
Languages : en
Pages : 36
Book Description
The simulated results of this paper show that New Keynesian DSGE models with capital accumulation can generate substantial persistencies in the dynamics of the main economic variables, due to the stock nature of capital. Empirical estimates on U.S. data from 1960:I to 2008:I show the response of monetary policy to inflation was almost twice lower than traditionally considered, as capital accumulation creates an additional channel of influence through real interest rates in the production sector. Versions of the model with indeterminacy empirically outperform determinate versions. This paper allows for the reconsideration of previous findings and has significant monetary policy implications.
Money
Author: Douglas GalePublisher: Cambridge University Press
ISBN: 9780521289009
Category : Business & Economics
Languages : en
Pages : 364
Book Description
This book deals mainly with what can be described as the general-equilibrium approach to monetary theory. The author does not attempt an encyclopaedic treatment, rather Gale investigates the central problems and ideas in the development of topical monetary theory. The first part of the book - technically the easier - deals with questions which will be recognized as falling within the traditional field of (macroeconomic) monetary theory, although the treatment is unflaggingly microeconomic. The second part is less conventional, dealing with the general equilibrium theory of money in a fundamental way.
Incomplete Financial Markets and Indeterminacy of Competitive Equilibrium
Author: David CassEconomies of Scale in Banking, Indeterminacy, and Monetary Policy
Author: Scott J. DresslerPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
This paper investigates economies of scale (ES) in financial intermediation as a source of equilibrium indeterminacy. Financial intermediation is embedded into a standard flexible-price monetary model, and provides deposits (inside money) that substitute with currency to purchase consumption. The results indicate that equilibrium indeterminacy does not depend on a large degree of ES in intermediation nor a large intermediation sector, but on monetary policy and the determination of nominal interest rates. Monetary policies not targeting nominal rates allow for indeterminacy to arise for any positive degree of ES, while policies targeting nominal rates eliminate indeterminacy for all degrees of ES.
Monetary Policy and Multiple Equilibria
Author: Jess BenhabibPublisher:
ISBN:
Category : Equilibrium (Economics)
Languages : en
Pages : 48
Book Description
The ECB’s Monetary Analysis Revisited
Author: Helge BergerPublisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 66
Book Description
Monetary aggregates continue to play an important role in the ECB's policy strategy. This paper revisits the case for money, surveying the ongoing theoretical and empirical debate. The key conclusion is that an exclusive focus on non-monetary factors alone may leave the ECB with an incomplete picture of the economy. However, treating monetary factors as a separate matter is a second-best solution. Instead, a general-equilibrium inspired analytical framework that merges the economic and monetary "pillars" of the ECB's policy strategy appears the most promising way forward. The role played by monetary aggregates in such unified framework may be rather limited. However, an integrated framework would facilitate the presentation of policy decisions by providing a clearer narrative of the relative role of money in the interaction with other economic and financial sector variables, including asset prices, and their impact on consumer prices.