Societal benefits of illiquid bonds
成果类型：
Article
署名作者：
Kocherlakota, NR
署名单位：
Stanford University; Federal Reserve System - USA; Federal Reserve Bank - Minneapolis
刊物名称：
JOURNAL OF ECONOMIC THEORY
ISSN/ISSBN：
0022-0531
DOI：
10.1016/S0022-0531(03)00029-2
发表日期：
2003
页码：
179-193
关键词：
摘要：
In this paper, I provide a possible explanation of why nominally risk-free bonds are essential in monetary economies. I argue that the role of nominal bonds is to enable agents to engage in intertemporal exchanges of money. I show that bonds can only serve this role if they are illiquid (costly to exchange for goods). Finally, I argue that in economies in which nominal bonds are essential, it is optimal for monetary policy to respond to changes in the distribution of liquidity needs. (C) 2003 Elsevier Science (USA). All rights reserved.