The idea of totally deregulating the financial system and implementing monetary policy through currency control has received renewed attention. An important aspect concernin g the desirability of using currency as the instrument of policy is t he behavior of the demand for currency. This paper...

Recently there has been growing interest in using general equilibrium models to understand the effects of monetary policy on interest rates and real economic activity. This research effort has involved the search for models that generate liquidity effects. One branch of this research employs...

This paper presents new facts regarding the behavior of the ex-ante real rate of interest. These facts are notably different from conventional wisdom about the cyclical properties of the real rate. In particular, we find that the ex-ante real rate is contemporaneously positively correlated with...

This paper investigates open market operations in Australia and incorporates some key features of these operations into a simple rational expectations macroeconomic model. Where relevant, comparisons with U.S. operating procedures are made. The major finding is that the Reserve Bank of Australia...

This paper incorporates home production into a dynamic general equilibrium model of overlapping generations with endogenous retirement to study Social Security reforms. As such, the model differentiates both consumption goods and labor effort according to their respective roles in home...

The model's flexibility also allows us to parameterize it in ways that generate behavior consistent with some recent studies in the literature, namely Midrigan (2006) and Golosov and Lucas (2008). We can also use simple versions of the model to understand the relationships between price...

In this paper, we document households' time use and consumption over the life cycle. Specifically, households spend a roughly constant amount of hours doing market work and home production early in the life cycle. At age 50, they begin to reduce their market hours sharply and increase home...

We show in a quantitative open-economy model that standard alternative assumptions about the currency in which firms price export goods are virtually inconsequential for the properties of aggregate variables, other than the terms of trade. This result is in contrast to a large literature that...