Inflation when the planner wants less spending
Contribuinte(s) |
Cavalcanti, Ricardo de Oliveira Cavalcanti, Ricardo de Oliveira Monteiro, P. K. Bertolai, Jefferson Donizeti Pereira |
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Data(s) |
09/04/2014
09/04/2014
12/03/2014
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Resumo |
I study optima in a random-matching model of outside money. The examples in this paper show a conflict between private and collective interests. While the planner worry about the extensive and intensive margin effects of trades in a steady state, people want the exhaust the gains from trades immediately, i.e., once in a meeting, consumers prefer spend more for a better output than take the risk of saving money and wait for good meetings in the future. Thus, the conflict can force the planner to choose allocations with a more disperse money distribution, mainly if people are im- patient. When the patient rate is low enough, the planner uses a expansionary policy to generate a better distribution of money for future trades. |
Identificador | |
Idioma(s) |
en_US |
Palavras-Chave | #Monetary Theory #Mechanism Design #Inflation #Heterogeneous Agents #Moeda #Política monetária #Inflação |
Tipo |
Dissertation |