New Monetarist Economics: models

Stephen Williamson and Randall Wright

No 443, Staff Report from Federal Reserve Bank of Minneapolis

Abstract: The purpose of this paper is to discuss some of the models used in New Monetarist Economics, which is our label for a body of recent work on money, banking, payments systems, asset markets, and related topics. A key principle in New Monetarism is that solid microfoundations are critical for understanding monetary issues. We survey recent papers on monetary theory, showing how they build on common foundations. We then lay out a tractable benchmark version of the model that allows us to address a variety of issues. We use it to analyze some classic economic topics, like the welfare effects of inflation, the relationship between money and capital accumulation, and the Phillips curve. We also extend the benchmark model in new ways, and show how it can be used to generate new insights in the study of payments, banking, and asset markets.

Keywords: Money; Monetary policy (search for similar items in EconPapers)
Date: 2010
New Economics Papers: this item is included in nep-cba, nep-dge, nep-hpe, nep-mac and nep-mon
References: Add references at CitEc
Citations: View citations in EconPapers (47)

Downloads: (external link)
http://www.minneapolisfed.org/research/sr/SR443.pdf
http://www.minneapolisfed.org/publications_papers/pub_display.cfm?id=4416 (application/pdf)

Related works:
Chapter: New Monetarist Economics: Models (2010)
Working Paper: New Monetarist Economics: Models (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedmsr:443

Access Statistics for this paper

More papers in Staff Report from Federal Reserve Bank of Minneapolis Contact information at EDIRC.
Bibliographic data for series maintained by Kate Hansel ().