Skip navigation
Skip navigation

Bonds with transactions service and optimal Ramsey policy

Hu, Yifan; Kam, Timothy


We introduce a model of government bonds with transactions services into a standard dynamic stochastic general equilibrium sticky-price monetary economy. This additional feature results in an endogenous interest-rate spread and affects equilibrium allocations and inflation by altering the Ramsey planner's sequence of implementability and sticky-price constraints. Qualitatively, the trade-off confronting a planner in sticky-price models shown in recent literature, between using inflation...[Show more]

CollectionsANU Research Publications
Date published: 2009
Type: Journal article
Source: Journal of Macroeconomics
DOI: 10.1016/j.jmacro.2009.01.006


File Description SizeFormat Image
01_Hu_Bonds_with_transactions_2009.pdf792.22 kBAdobe PDF    Request a copy

Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.

Updated:  20 July 2017/ Responsible Officer:  University Librarian/ Page Contact:  Library Systems & Web Coordinator