Some results on the optimality and implementation of the Friedman rule in the Search Theory of Money

• 成果类型: Article
• 署名作者: Lagos, Ricardo
• 署名单位: New York University
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2009.05.010
• 发表日期: 2010
• 页码: 1508-1524
• 关键词: Friedman rule; Interest rates; liquidity; monetary policy; search

摘要

I characterize a large family of monetary policies that implement Milton Friedman's prescription of zero nominal interest rates in a monetary search economy with multiple assets and aggregate uncertainty. This family of optimal policies is defined by two properties: (i) the money supply must be arbitrarily close to zero for an infinite number of dates, and (ii) asymptotically, on average (over the dates when fiat money plays an essential role), the growth rate of the money supply must be at least as large as the rate of time preference. (C) 2010 Elsevier Inc. All rights reserved.