Coexistence of Money and Interest-Bearing Securities

Creator Series Date Created
  • 1995-04
  • A pairwise random meeting model with money is used to study the nominal yield on pure-discount, default-free securities that are issued by the government. There is one steady state with matured securities at par and, for some parameters, another with them at a discount. In the former, exogenous rejection of unmatured securities by the government is necessary and sufficient for such a steady state to display a positive nominal yield on unmatured securities. In the latter, the post-maturity discount on securities induces a deeper pre-maturity discount even if there is no exogenous rejection of unmatured securities.

Subject (JEL) Stichwort Date Modified
  • 11/01/2019
Corporate Author
  • Federal Reserve Bank of Minneapolis. Research Department.
  • Federal Reserve Bank of Minneapolis
Resource type


In Collection:
Zuletzt geändert

Herunterladbarer Inhalt

PDF Herunterladen

Zipped Files

Download a zip file that contains all the files in this work.