Arbeitspapier

A tractable monetary model under general preferences

Consider the monetary model of Lagos and Wright (JPE 2005) but with general preferences and general production. I show that preferences satisfying UXXUHH - (UXH)2 = 0 is a sufficient condition for the existence and uniqueness of monetary equilibrium with degenerate money distribution. I solve for the entire class of exact solutions to the above non-linear second order partial differential equation. This class of preferences includes ones with constant return to scale, for example, constant elasticity of substitution (CES), and ones used in many other macroeconomics literatures. I also analyze the welfare implication of monetary policy in this economy.

Sprache
Englisch

Erschienen in
Series: Bank of Canada Working Paper ; No. 2013-7

Klassifikation
Wirtschaft
Money and Interest Rates: General
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Thema
Economic models

Ereignis
Geistige Schöpfung
(wer)
Wong, Tsz-Nga
Ereignis
Veröffentlichung
(wer)
Bank of Canada
(wo)
Ottawa
(wann)
2013

DOI
doi:10.34989/swp-2013-7
Handle
Letzte Aktualisierung
20.09.2024, 08:23 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Wong, Tsz-Nga
  • Bank of Canada

Entstanden

  • 2013

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