The liquidity effect and money demand

• 成果类型: Article
• 署名作者: Cook, D
• 署名单位: Hong Kong University of Science & Technology
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/S0304-3932(98)00056-7
• 发表日期: 1999
• 页码: 377-390
• 关键词: liquidity effect; intertemporal spillovers; increasing returns to scale; externalities; propagation

摘要

I suggest a 'liquidity effect' model in which financial intermediation costs are determined by aggregate economic activity. An expansionary monetary shock leads to a persistent contraction in the loan-deposit rate spread, a persistent liquidity effect, and a persistent real expansion. A feature of this expansion is that nominal prices respond sluggishly to monetary shocks as an equilibrium outcome. (C) 1999 Elsevier Science B.V. All rights reserved. JEL classification: E32; E4; E51.