Ricardian Equivalence and Money Dominated in Return: Are They Mutually Consistent Generally?

Public
Creator Series Issue number
  • 099
Date Created
  • 1985-05
Abstract
  • Different conclusions about the effects of open market operations are reached even among economists using full employment and rational expectations models. I show that these differences can be attributed to different assumptions regarding the concept of the deficit that is held fixed for an open market operation, the diversity among agents, and the features generating money demand. With regard to those features, I argue that plausible ways of explaining the holding of low-return money preclude the kind of perfect credit markets needed to obtain Ricardian equivalence.

Corporate Author
  • Federal Reserve Bank of Minneapolis. Research Department
Publisher
  • Federal Reserve Bank of Minneapolis
Resource type DOI
License

Des relations

Dans Collection:
Dernière modification

Contenu téléchargeable

Télécharger le fichier PDF

Zipped Files

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

Articles