Optimal monetary policy with heterogeneous money holdings

• 成果类型: Article
• 署名作者: Lippi, Francesco; Ragni, Stefania; Trachter, Nicholas
• 署名单位: University of Sassari; Federal Reserve System - USA; Federal Reserve Bank - Richmond
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2015.07.005
• 发表日期: 2015
• 页码: 339-368
• 关键词: Heterogeneous agents; Redistributive monetary policy; Pure currency; precautionary savings; Friedman rule

摘要

We study the optimal anticipated policy in a pure-currency economy with flexible prices and a non-degenerate distribution of money holdings. The economy features a business cycle and lump-sum monetary injections have distributional effects that depend on the state of the cycle. We parsimoniously characterize the dynamics of the economy and study the optimal regulation of the money supply as a function of the state under commitment. The optimal policy prescribes monetary expansions in recessions, when insurance is most needed by the cash-poor unproductive agents. Conversely, the optimal policy prescribes monetary contractions during booms, so that the inflationary effect of the occasional expansions is undone. (C) 2015 Elsevier Inc. All rights reserved.