Asymmetric Liquidity Shocks and Optimality of the Freidman Rule

Eisei Ohtaki

No e058, Working Papers from Tokyo Center for Economic Research

Abstract: This article examines the optimality of the Freidman rule in an overlapping generations model with spatial separation, wherein asymmetric liquidity shocks are observed. Suboptimality of the Freidman rule is shown. Furthermore, when the number of locations is sufficiently large, there is no room for monetary policy to improve social welfare.

Pages: 10 pages
Date: 2013-08
New Economics Papers: this item is included in nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.tcer.or.jp/wp/pdf/e58.pdf (application/pdf)

Related works:
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:tcr:wpaper:e58

Access Statistics for this paper

More papers in Working Papers from Tokyo Center for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by ().