A tractable model of indirect asset liquidity

• 成果类型: Article
• 署名作者: Herrenbrueck, Lucas; Geromichalos, Athanasios
• 署名单位: Simon Fraser University; University of California System; University of California Davis
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2016.12.009
• 发表日期: 2017
• 页码: 252-260
• 关键词: Monetary-search models; Asset liquidity; asset prices; monetary policy; monetary aggregates

摘要

Assets have indirect liquidity if they cannot be used as media of exchange, but can be traded to obtain a medium of exchange (money) and thereby inherit monetary properties. This essay describes a simple dynamic model of indirect asset liquidity, provides closed form solutions for real and nominal assets, and discusses properties of the solutions. Some of these are standard: assets and money are imperfect substitutes, asset demand curves slope down, and money is not always neutral. Other properties are more surprising: prices are flexible but appear sticky, and an increase in the supply of indirectly liquid assets can decrease welfare. Because of its simplicity, the model can be useful as a building block inside a larger model, and for teaching concepts from monetary theory. (C) 2016 Elsevier Inc. All rights reserved.