This paper describes a simple general equilibrium model in which a permanent easing of monetary policy, engineered via open market purchases, may produce a permanent decrease in the real interest rate and a permanent increase in the inflation rate. Under somewhat stronger assumptions, the...

This paper reexamines the condition <InlineEquation ID="Equ1"> <EquationSource Format="TEX">$E\{\ln r\} \ln $</EquationSource> </InlineEquation> (1 + n), which Zilcha (1991) presents as a necessary and sufficient condition for dynamic inefficiency of stationary allocations in overlapping generation models with stochastic production. We show that this condition is necessary but not...</equationsource></inlineequation>

This paper uses a general equilibrium model to study the determination of the exchange rate in an economy with fundamental uncertainty. The model has steady state equilibria in which the exchange rate is constant. These equilibria may coexist with “quasi-fundamental” equilibria –...

Illness is a major risk to people's livelihoods in resource-poor settings, particularly where there are rising levels of chronic illness. Measures that improve access to treatment are increasingly seen as a vital form of social protection for vulnerable households, and central to the achievement...