On the Distribution of Money Holdings in a Random-Matching Model

This paper studies stationary and nonstationary distributions of money holdings in a random-matching model. The first part characterizes the stationary distributions of money holdings and derives the optimum quantity of money. The second part considers nonstationary distributions of the optimum quantity of money to show that if the production costs are not too large, any distribution of the optimum quantity of money converges asymptotically to the uniform distribution.

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Year of publication:	2002
Authors:	Berentsen, Aleksander
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	Optimum Quantity of Money \| Distribution of Money Holdings \| Convergence \| Search Equilibrium

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	E52 - Monetary Policy (Targets, Instruments, and Effects) ; E40 - Money and Interest Rates. General ; D51 - Exchange and Production Economies
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011109276