Showing 1 - 10 of 139
Persistent link: https://www.econbiz.de/10005889600
In this paper we reconsider the link between tight money policies and inflation in the spirit of Sargent and Wallace's (1981) influential paper, "Some unpleasant monetarist arithmetic." A standard neoclassical model with capital, bonds, and return-dominated currency is used. The potential for...
Persistent link: https://www.econbiz.de/10005111420
In this paper, we argue that the observed difference in the cost of intraday and overnight liquidity is part of an optimal payments system design. In our environment, the interest charged on overnight liquidity affects output, while the cost of intraday liquidity only affects the distribution of...
Persistent link: https://www.econbiz.de/10012730172
This paper revisits the role played by myopia in generating a theoretical rationale for pay-as-you-go social security in dynamically efficient economies. Contrary to received wisdom, if the real interest rate is exogenously fixed, enough myopia may justify public pensions but never alongside...
Persistent link: https://www.econbiz.de/10012770252
Persistent link: https://www.econbiz.de/10010630348
Persistent link: https://www.econbiz.de/10006752432
This paper studies a labor market search-matching model with multi-worker firms to investigate how firms utilize the extensive and intensive margins over the business cycle. The earnings function derived from the Stole-Zwiebel bargaining acts as an adjustment cost function for employment and...
Persistent link: https://www.econbiz.de/10011228303
This paper studies a simple monetary growth model with debt and deficits to investigate the effects of various polices on output and inflation when the central bank is `tough.' In sharp contrast to the vast literature which implicitly or explicitly assumes fiscal dominance regime, in which the...
Persistent link: https://www.econbiz.de/10005702761
Persistent link: https://www.econbiz.de/10005307551
This paper develops a dynamic model of the labor market in which the degree of substitution between employment and hours of work is determined as part of a search equilibrium. Each firm chooses its demand for working hours and number of vacancies, and the earnings profile is determined by Nash...
Persistent link: https://www.econbiz.de/10008864999