English

A Paradox of Expansionary Policies

Abstract

In this paper, we develop a model of intermediation in triparty meetings to
illustrate the following implications of lack of commitment in matching models
of money: savings are inefficiently low; inflation has a negative effect on selfinsurance;
and although lump-sum transfers should be avoided in many specifications,
positive inflation can be optimal with inside money.

Fundacao Getulio Vargas
Wednesday, October 14, 2015 - 13:00 to 14:00
Location: 
Room 23, Department of Industrial Engineering, University of Chile ( Domeyko 2338, second floor, Santiago)