Bafile, Romina; Piergallini, Alessandro - Volkswirtschaftliche Fakultät, … - 2011
mechanism is critically affected by the firms' money demand choice. Specifically, we prove that equilibrium determinacy may … and quantitative debate on the importance of money for the conduct of monetary policy, however, overlooks firms' money … demand. Working in an otherwise baseline New Keynesian setup, this paper shows that the monetary policy transmission …