التفاصيل البيبلوغرافية
| العنوان: |
Liquidity, the Mundell–Tobin Effect, and the Friedman Rule. |
| المؤلفون: |
ALTERMATT, LUKAS, WIPF, CHRISTIAN |
| المصدر: |
Journal of Money, Credit & Banking (John Wiley & Sons, Inc.); Aug2024, Vol. 56 Issue 5, p1235-1259, 25p |
| مصطلحات موضوعية: |
PRICE inflation, CAPITAL investments, MONETARY policy, LIQUIDITY (Economics), OVERLAPPING generations model (Economics), CURRENCY question |
| People: |
MUNDELL, Robert, 1932-2021, TOBIN, James, 1918-2002 |
| مستخلص: |
We investigate how a positive relation between inflation and capital investment (the Mundell–Tobin effect, MT‐E) affects optimal monetary policy in a framework that combines overlapping generations and new Monetarist models. We find that inflation rates above the Friedman rule are optimal if and only if there is an MT‐E. In the absence of the MT‐E, the Friedman rule is optimal. With an MT‐E, increasing inflation above the Friedman rule leads to a first‐order welfare gain from increasing capital investment, and only to a second‐order welfare loss from reducing consumption in markets where liquidity matters. [ABSTRACT FROM AUTHOR] |
|
Copyright of Journal of Money, Credit & Banking (John Wiley & Sons, Inc.) is the property of John Wiley & Sons, Inc. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) |
| قاعدة البيانات: |
Complementary Index |
Full Text Finder