Eyster, Erik; Madarász, Kristóf; Michaillat, Pascal - C.E.P.R. Discussion Papers - 2014
This paper proposes a model that explains the nonneutrality of money from two well-documented psychological assumptions. The model incorporates into the general-equilibrium monopolistic-competition framework of Blanchard and Kiyotaki [1987] the psychological assumptions that (1) consumers...