A new suggestion for simplifying the theory of money

• 成果类型: Article
• 署名作者: Burdett, Kenneth; Trejos, Alberto; Wright, Randall
• 署名单位: University of Pennsylvania; INCAE Business School; University of Wisconsin System; University of Wisconsin Madison
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2017.09.006
• 发表日期: 2017
• 页码: 423-450
• 关键词: money; search; DYNAMICS; dispersion

摘要

We propose a new search-theoretic model of monetary exchange with indivisible assets, based on price posting instead of bargaining, and incorporating noisy search. This yields some familiar results, plus a lot more. The model admits multiple steady states due to the self-referential nature of liquidity. It admits cyclic, chaotic and stochastic equilibria, and compared to bargaining versions, the dynamics are more general and have better microfoundations. It generates price dispersion, with interesting efficiency implications, plus sticky prices and rational inattention. Parametric examples yield closed-form solutions. Based on these results, we suggest this should become a benchmark model in monetary economics. (C) 2017 Elsevier Inc. All rights reserved.