Coexistence of money and interest-bearing securities Public Deposited

Creator Series Keyword Subject Abstract
  • 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.
Corporate Author
  • Federal Reserve Bank of Minneapolis. Research Department.
Date Created
  • 1995-04
Date Modified
  • 04/06/2018
Resource type

Relationships

In Collection:
Last modified

Downloadable Content

Download PDF

Zipped Files

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

Items

Thumbnail Title Date Uploaded Visibility Actions
M900nt48n?file=thumbnail 19950427fedmleac1995sra.pdf 2018-03-29 Public