Bonds with transactions service and optimal Ramsey policy
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]
|Collections||ANU Research Publications|
|Source:||Journal of Macroeconomics|
|01_Hu_Bonds_with_transactions_2009.pdf||792.22 kB||Adobe PDF||Request a copy|
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