MONEY, SEARCH, AND BUSINESS CYCLES

• 成果类型: Article
• 署名作者: Aruoba, Boragan
• 署名单位: University System of Maryland; University of Maryland College Park
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/j.1468-2354.2011.00655.x
• 发表日期: 2011
• 页码: 935-959
• 关键词: prices; POLICY; MODEL; variability; velocity

摘要

Monetary models that specify explicit frictions to generate money demand have been developed over the last 20 years and have been used to address many questions. In this article, I investigate the short-run properties of a particular model considering a number of versions based on some modeling choices. All versions feature flexible prices. I find that in many aspects, both real and nominal, the model resembles other, more reduced-form models. Some variations of the model come closer to matching some key nominal facts than a reduced-form model. The model also generates counter cyclical markups, in line with the data.