Risultati della ricerca
Creator: Williamson, Stephen D. Series: Lucas expectations anniversary conference Abstract:
A cash-in-advance model with sequential markets is constructed, where unanticipated monetary injections are nonneutral and can potentially produce large liquidity effects. However, if the monetary authority adheres to an optimal money rule, money should not respond to unanticipated shocks, so that a Friedman rule is suboptimal and the monetary authority does not exploit the liquidity effect. Quantitatively, the model can generate variability in money and nominal interest rates close to what is observed, and can produce data with no obvious evidence of the existence of liquidity effects.
Parola chiave: Monetary policy, Interest, Liquidity, Money, and Interest rates Soggetto: E52 - Monetary policy, central banking, and the supply of money and credit - Monetary policy and E50 - Monetary policy, central banking, and the supply of money and credit - General