| Description |
1 online resource (xvii, 196 pages) : illustrations |
| Contents |
Introduction; Part I -- Ricardian and Non-Ricardian Economies; 1 -- The Ricardian Issue and the Pigou Effect; 2 -- Pigou Reconstructed: The Weil Model; Part II -- Interest, Prices, and Money; 3 -- Liquidity Effects; 4 -- Interest Rate Rules and Price Determinacy; 5 -- Global Determinacy; 6 -- Fiscal Policy and Determinacy; Part III -- Optimal Policy; 7 -- A Simple Framework for Policy Analysis; 8 -- Government Information and Policy Activism; 9 -- Fiscal Policy and Optimal Interest Rate Rules; 10 -- Inflation and Optimal Interest Rate Rules; Bibliography; Index |
| Summary |
An important recent advance in macroeconomics is the development of dynamic stochastic general equilibrium (DSGE) macromodels. The use of DSGE models to study monetary policy, however, has led to paradoxical and puzzling results on a number of central monetary issues including price determinacy and liquidity effects. In Money, Interest, and Policy, Jean-Pascal Benassy argues that moving from the standard DSGE models - which he calls "Ricardian" because they have the famous "Ricardian equivalence" property-to another, "non-Ricardian" model would resolve many of these issues. A Ricardian model represents a household as a homogeneous family of infinitely lived individuals, and Benassy demonstrates that a single modification-the assumption that new agents are born over time (which makes the model non-Ricardian)-can bridge the current gap between monetary intuitions and facts, on one hand, and rigorous modeling, on the other. After comparing Ricardian and non-Ricardian models, Benassy introduces a model that synthesizes the two approaches, incorporating both infinite lives and the birth of new agents. Using this model, he considers a number of issues in monetary policy, including liquidity effects, interest rate rules and price determinacy, global determinacy, the Taylor principle, and the fiscal theory of the price level. Finally, using a simple overlapping generations model, he analyzes optimal monetary and fiscal policies, with a special emphasis on optimal interest rate rules |
| Analysis |
ECONOMICS/Political Economy |
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ECONOMICS/Macroeconomics |
| Bibliography |
Includes bibliographical references (pages 189-194) and index |
| Notes |
English |
|
Print version record |
| Subject |
Money -- Mathematical models
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Equilibrium (Economics) -- Mathematical models
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POLITICAL SCIENCE -- Economic Conditions.
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BUSINESS & ECONOMICS -- Economics -- Macroeconomics.
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Equilibrium (Economics) -- Mathematical models
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Money -- Mathematical models
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Geldpolitik
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Fiskalpolitik
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Pengar -- matematiska modeller.
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Jämvikt (nationalekonomi) -- matematiska modeller.
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| Form |
Electronic book
|
| ISBN |
9780262268080 |
|
0262268086 |
|
9781429465533 |
|
1429465530 |
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0262026139 |
|
9780262026130 |
|
1282097008 |
|
9781282097001 |
|
9786612097003 |
|
6612097000 |
|
