We integrate an overlapping generations model into a new monetarist framework and show that the Friedman rule is not optimal. This is because inflation makes saving for retirement less attractive, such that young agents optimally choose to increase their consumption at the expense of lower...

This paper develops a small-scale DSGE model which embeds a demographic structure within a monetary policy framework. We extend the tractable, though non-monetary overlapping-generations model of Gertler (1999) and present a small synthesis model which combines the set-up of Gertler with a...

This paper develops a small-scale DSGE model which embeds a demographic structure within a monetary policy framework. We extend the tractable, though non-monetary overlapping-generations model of Gertler (1999) and present a small synthesis model which combines the set-up of Gertler with a...

Intro -- Introduction -- Part I - Ricardian and Non-Ricardian Economies -- 1 - The Ricardian Issue and the Pigou Effect -- 2 - Pigou Reconstructed: The Weil Model -- Part II - Interest, Prices, and Money -- 3 - Liquidity Effects -- 4 - Interest Rate Rules and Price Determinacy -- 5 - Global...