A Tractable Monetary Model under General Preferences

• 成果类型: Article
• 署名作者: Wong, Tsz-Nga
• 署名单位: Bank of Canada
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdv034
• 发表日期: 2016
• 页码: 402-420
• 关键词: money; equilibrium; inflation; CHOICE; RISK

摘要

This article studies an economy with both centralized and decentralized monetary exchanges under search frictions. A degenerate asset distribution is featured under a broad class of preferences including, for example, constant return to scale, constant elasticity of substitution, CARA and others from a range of macroeconomic literatures. Some novel applications impossible under quasi-linear preferences, for example endogenous growth, are illustrated under this class of preferences. This article finds that the welfare cost and growth loss of inflation can be much higher in these applications than previous estimates.