Optimal monetary and fiscal policies in a search theoretic model of monetary exchange
Search models of monetary exchange commonly assume that terms of trade in anonymous markets are determined via Nash bargaining, which generally causes monetary equilibrium to be inefficient. Bargaining frictions add to the classical intertemporal distortion present in most monetary models, whereby agents work today to obtain cash that can be used only in future transactions. In this paper, we study the properties of optimal fiscal and monetary policy within the framework of Lagos and Wright...[Show more]
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|Source:||European Economic Review|
|01_Gomis Porqueras_Optimal_monetary_and_fiscal_2010.pdf||283.4 kB||Adobe PDF||Request a copy|
|02_Gomis Porqueras_Optimal_monetary_and_fiscal_2010.pdf||279.18 kB||Adobe PDF||Request a copy|
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