Anticipated inflation and rates of return in a search-theoretic monetary model

• 成果类型: Article
• 署名作者: Cone, TE
• 署名单位: State University of New York (SUNY) System; State University of New York (SUNY) Brockport
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2004.07.005
• 发表日期: 2005
• 页码: 567-574
• 关键词: asset yields; money; inflation

摘要

How does anticipated inflation of fiat money affect the real return of a near money-an asset with real value used to mediate trades? This essay studies a search model in which decentralized trade takes place under a fixed bargaining rule. The essay analytically studies the comparative statics of a near money's real return as it varies with inflation. The effects diverge markedly over the parameter space. There exist parameters for which higher inflation lowers the real asset return, as suggested by asset substitution theories. There also exist parameters for which inflation has the opposite effect. (c) 2005 Elsevier B.V. All rights reserved.