A monetary search model with non-unitary discounting

Based on findings in the behavioral economics literature, we incorporate non-unitary discounting into a monetary search model to study optimal monetary policy. We apply non-unitary discounting, that is, discount rates that are different across goods. With this extension to the model, we find that there are cases where optimal monetary policy deviates from the Friedman rule.

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Year of publication:	2019
Authors:	Maeda, Daiki
Publisher:	Osaka : Osaka University, Institute of Social and Economic Research (ISER)
Subject:	Non-unitary discounting \| Search \| Friedman rule

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Series:	ISER Discussion Paper ; 1062
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	1677388382 [GVK] hdl:10419/230468 [Handle]
Classification:	E52 - Monetary Policy (Targets, Instruments, and Effects) ; e70
Source:	EconStor

Persistent link: https://www.econbiz.de/10012430015