Arbeitspapier
The Tobin effect and the Friedman rule
This paper studies an overlapping generations economy with capital where limited communication and stochastic relocation create an endogenous transactions role for fiat money. We assume a production function with a knowledge externality (Romer-style) that nests economies with endogenous growth (AK form) and those with no long-run growth (the Diamond model). We show that the Tobin effect is always operative. Under CRRA (constant relative risk aversion) preferences, a mild degree of social increasing returns is sufficient (but not necessary) for some positive inflation to dominate zero inflation and for the Friedman rule to be suboptimal, irrespective of the degree of risk aversion.
- Sprache
-
Englisch
- Erschienen in
-
Series: Staff Report ; No. 224
- Klassifikation
-
Wirtschaft
Price Level; Inflation; Deflation
Money Supply; Credit; Money Multipliers
Central Banks and Their Policies
- Thema
-
Friedman rule, Tobin effect, monetary policy
Geldmengensteuerung
Overlapping Generations
Produktionsfunktion
Neue Wachstumstheorie
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Bhattacharya, Joydeep
Haslag, Joseph
Martin, Antoine
- Ereignis
-
Veröffentlichung
- (wer)
-
Federal Reserve Bank of New York
- (wo)
-
New York, NY
- (wann)
-
2005
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:46 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Bhattacharya, Joydeep
- Haslag, Joseph
- Martin, Antoine
- Federal Reserve Bank of New York
Entstanden
- 2005
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