Monetary policy with asset-backed money

• 成果类型: Article
• 署名作者: Andolfatto, David; Berentsen, Aleksander; Waller, Christopher
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - St. Louis; Simon Fraser University; University of Basel
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2015.08.006
• 发表日期: 2016
• 页码: 166-186
• 关键词: Limited commitment; Asset-backed money; optimal monetary policy

摘要

We study the use of asset-backed money in a neoclassical growth model with illiquid capital. A mechanism is delegated control of productive capital and issues claims against the revenue it earns. These claims constitute a form of asset-backed money. The mechanism determines (i) the number of claims outstanding, (ii) the dividends paid to claim holders, and (iii) the structure of redemption fees. We find that for capital-rich economies, the first-best allocation can be implemented and price stability is optimal However, for sufficiently capital-poor economies, achieving the first-best allocation requires a strictly positive rate of inflation. In general, the minimum inflation necessary to implement the first-best allocation is decreasing in capital wealth. (C) 2015 Elsevier Inc. All rights reserved.