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This paper aims to integrate the money market into the structure of the economy. The microfoundation is the starting point to define the money market and the general equilibrium mechanism of the economy. On this basis, this research seeks a linking mechanism of the money market with economic...
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literature has also begun to provide evidence on the microfoundations of external economies of scale. The best known of these …
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This paper discusses methodological individualism and the perceived "need" for microfoundations in economic theory. It … argues that the persistent focus on microfoundations has led a large part of the field to overlook the complexity of social … development. The paper suggested focusing on social foundations as an alternative to microfoundations that is particularly …
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We present a thought-provoking study of two monetary models: the cash-in-advance and the Lagos and Wright (2005) models. We report that the different approach to modeling money - reduced-form vs. explicit role - neither induces theoretical nor quantitative differences in results. Given...
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