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Money Holdings (money + holdings)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%

Selected Abstracts

On the Distribution of Money Holdings in a Random-Matching Model*

INTERNATIONAL ECONOMIC REVIEW, Issue 3 2002
Aleksander BerentsenArticle first published online: 6 AUG 200
This article studies stationary and nonstationary distributions of money holdings in a random-matching model. The first part characterizes the stationary distributions of money holdings and derives the optimum quantity of money. The second part considers nonstationary distributions of the optimum quantity of money to show that if the production costs are not too large, any distribution of the optimum quantity of money converges asymptotically to the uniform distribution. [source]

WHO IS AFRAID OF THE FRIEDMAN RULE?

ECONOMIC INQUIRY, Issue 2 2008
JOYDEEP BHATTACHARYA
We explore the connection between optimal monetary policy and heterogeneity among agents in a standard monetary economy with two types of agents where the stationary distribution of money holdings is nondegenerate. Sans type-specific fiscal policy, we show that the zero-nominal-interest rate policy (the Friedman rule) does not maximize type-specific welfare; it may not maximize aggregate ex ante social welfare either. Indeed, one or, more surprisingly, both types may benefit if the central bank deviates from the Friedman rule. (JEL E31, E51, E58) [source]

On the Distribution of Money Holdings in a Random-Matching Model*

INTERNATIONAL ECONOMIC REVIEW, Issue 3 2002
Aleksander BerentsenArticle first published online: 6 AUG 200
This article studies stationary and nonstationary distributions of money holdings in a random-matching model. The first part characterizes the stationary distributions of money holdings and derives the optimum quantity of money. The second part considers nonstationary distributions of the optimum quantity of money to show that if the production costs are not too large, any distribution of the optimum quantity of money converges asymptotically to the uniform distribution. [source]

The representative household's demand for money in a cointegrated VAR model

THE ECONOMETRICS JOURNAL, Issue 2 2000
Thórarinn G. Pétursson
A representative household model with liquidity services directly in the utility function is used to derive a stable, data congruent error correction model of broad money demand in Iceland. This model gives a linear, long-run relation between real money balances, output and the opportunity cost of holding money that is used to over-identify the cointegrating space. The over-identifying restrictions suggest that the representative household is equally averse to variations in consumption and real money holdings. Finally, a forward-looking interpretation of the short-run dynamics, assuming quadratic adjustment costs, cannot be rejected by the data. [source]