An Analysis of Monetary Policy in a Monetary Search Model with Non-unitary Discounting

Daiki Maeda

ISER Discussion Paper from Institute of Social and Economic Research, The University of Osaka

Abstract: Based on findings in the behavioral economics literature, I incorporate non-unitary discounting into a monetary search model to study optimal monetary policy. I apply non-unitary discounting, that is, discount rates that are different across goods. With this extension to the model, I find that there are cases where optimal monetary policy deviates from the Friedman rule.

Date: 2019-09, Revised 2020-07
New Economics Papers: this item is included in nep-mac and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:dpr:wpaper:1062r

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