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Monetary Policy with Asset-Backed Money
Project funded by own resources |
Project title |
Monetary Policy with Asset-Backed Money |
Principal Investigator(s) |
Berentsen, Aleksander
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Organisation / Research unit |
Departement Wirtschaftswissenschaften / Wirtschaftstheorie (Berentsen) |
Project Website |
https://ideas.repec.org/p/zur/econwp/198.html |
Project start |
01.01.2015 |
Probable end |
31.12.2027 |
Status |
Active |
Abstract |
We study the use of asset-backed money in a neoclassical growth model with illiquid capital. A mechanism is delegated control of productive capi- tal and issues claims against the revenue it earns. These claims constitute a form of asset-backed money. The mechanism determines (i) the number of claims outstanding, (ii) the dividends paid to claim holders, and (iii) the structure of redemption fees. We find that for capital-rich economies, the first-best allocation can be implemented and price stability is optimal. However, for sufficiently capital-poor economies, achieving the first-best allocation requires a strictly positive rate of inflation. In general, the minimum infiation necessary to implement the first-best allocation is above the Friedman rule and varies with capital wealth. |
Financed by |
University funds
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Published results () |
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ID |
Autor(en) |
Titel |
ISSN / ISBN |
Erschienen in |
Art der Publikation |
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3693113 |
Andolfatto, David; Berentsen, Aleksander; Waller, Christopher |
Monetary policy with asset-backed money |
0022-0531 ; 1095-7235 |
Journal of Economic Theory |
Publication: JournalArticle (Originalarbeit in einer wissenschaftlichen Zeitschrift) |
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Cooperations () |
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ID |
Kreditinhaber |
Kooperationspartner |
Institution |
Laufzeit - von |
Laufzeit - bis |
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2743149 |
Berentsen, Aleksander |
Andolfatto, David |
Federal Reserve Bank of St. Louis and Simon Fraser University |
01.08.2013 |
31.07.2015 |
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2743152 |
Berentsen, Aleksander |
Waller, Christoph |
Federal Reserve Bank of St. Louis and University of Notre Dame |
01.08.2013 |
31.07.2015 |
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