THE FRIEDMAN RULE: EXPERIMENTAL EVIDENCE

• 成果类型: Article
• 署名作者: Duffy, John; Puzzello, Daniela
• 署名单位: University of California System; University of California Irvine; Indiana University System; Indiana University Bloomington
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12549
• 发表日期: 2022
• 页码: 671-698
• 关键词: policy design evidence; monetary-policy; social norms; inflation; expectations; money; TRADE; equilibrium; liquidity; exchange

摘要

We evaluate the Friedman rule for optimal monetary policy in a laboratory economy based on Lagos-Wright (Journal of Economic Theory 145 (2010), 1508-24). We explore two implementations of Friedman's rule: one involving deflationary monetary policy and another where interest is paid on money. We compare the welfare consequences of the Friedman rule with two other policies: a constant money supply regime and a regime where the money supply grows at a constant k%. Counter to theory, we find that the Friedman rule is not welfare-improving, performing no better than the constant money regime. By one welfare measure, the k% money growth rate regime performs best.