INSTITUTO MILENIO IMPERFECCIONES DE MERCADO Y POLÍTICA PÚBLICAS

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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

Lugar:

Room 23, Department of Industrial Engineering, University of Chile ( Domeyko 2338, second floor, Santiago)

Expositor:

Ricardo Cavalcanti

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