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Given the renewed interest in negative interest rates as a means for overcoming the zero bound on nominal interest rates, this article reviews the history of negative nominal interest rates and gives a brief survey over the current proposals that received popular attention in the wake of the...
Persistent link: https://www.econbiz.de/10010939189
Search-theory has become the main paradigm for the micro-foundation of money. But no comprehensive business cycle analysis has been undertaken yet with a search-based monetary model. This paper extends the model with divisible goods and divisible money of Shi (JET, 1998) to allow for capital...
Persistent link: https://www.econbiz.de/10005584989
Search frictions in the goods market have proven to be a fruitful deviation from the fiction of a centralized Walrasian market providing a micro-foundation of the use of money as a medium of exchange. Moreover, persistent propagation of monetary shocks can arise in search-theoretic monetary...
Persistent link: https://www.econbiz.de/10005249674
A periodic "Gesell Tax" on money holdings as a way to overcome the zero-lower-bound on nominal interest rates is studied in a framework where money is essential. For this purpose, I characterize the efficiency properties of taxing money in a full-fledged macroeconomic business cycle model of the...
Persistent link: https://www.econbiz.de/10009399781
Persistent link: https://www.econbiz.de/10011115463
This paper critically discusses three proposals to overcome the zero interest bound, which have recently been proposed by prominent economists. We trace back the historical origins of these proposals, reaching back to the late 19th century, and comment on their theoretical and practical...
Persistent link: https://www.econbiz.de/10010734052
Given the renewed interest in negative interest rates, this article analyses Gesell’s theory of interest and its connection to J. M. Keynes’ General Theory. Gesell recognised that money has little or no carrying costs in comparison to goods. Therefore, money holders are able to withhold from...
Persistent link: https://www.econbiz.de/10010760462
In conventional bad bank models, the estimated fundamental value of the illiquid assets is paid to the ailing bank, thereby leaving considerable economic risk with the asset management company. In this paper, a different approach is proposed which combines the bad bank solution with equalization...
Persistent link: https://www.econbiz.de/10010863221
Persistent link: https://www.econbiz.de/10010864982
Die Einzahlungen und Bürgschaften im Rahmen des Europäischen Stabilisierungsmechanismus (ESM) führen zu einer starken Belastung der soliden Euroländer — ob das Kapital überhaupt ausreicht, ist zudem nicht sicher. Sinnvoller wäre es, nicht die Staatsschulden in den Fokus zu nehmen,...
Persistent link: https://www.econbiz.de/10011000981