The effect of a permanent change of inflation on the distribution of wealth is analyzed in a general equilibrium OLG model that is calibrated with regard to the characteristics of the US economy. Poor agents accumulate savings predominantly in the form of money, while rich agents participate in...

We compare the numerical methods that are most widely applied in the computation of the standard business cycle model with flexible labor. The numerical techniques imply economically insignificant differences with regard to business cycle summary statistics except for the volatility of...

In most OECD countries, unemployment benefits are tied to individual previous labor earnings. We study the progressivity of this indexation with regard to its effects on employment, output, and welfare in a calibrated general equilibrium model with search unemployment. Employment varies...

This paper presents a business cycle analysis of monetary policy shocksmeasured by disturbances to open market operations, i.e. the ratio of open market papers to non-borrowed reserves. We find empirical evidence for the usefulness of this policy measure, as it predicts significant declines in...

Recent work on money and endogenous growth finds modest welfare costs of inflation. Furthermore, high inflation reduces the growth rate. The author presents a monetary endogenous growth model with labor market frictions in the form of search unemployment which is calibrated for the US economy....

Superneutrality is demonstrated to no longer hold in the Sidrauski model as soll as agents are heterogenous with regard to their productivity. However, quantitative effects of inflation on the capital stock are found to be rather small.