An argument for positive nominal interest
Gaetano Bloise and
Herakles Polemarchakis
Additional contact information
Herakles Polemarchakis: Department of Economics, University of Warwick
The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics
Abstract:
In a dynamic economy, money provides liquidity as a medium of exchange.A central bank that sets the nominal rate of interest and distributes its profit to shareholders as dividends is traded in the asset market. A nominal rates of interest that tend to zero, but do not vanish, eliminate equilibrium allocations that do not converge to a Pareto optimal allocation.
Keywords: nominal rate of interest; dynamic efficiency (search for similar items in EconPapers)
JEL-codes: D60 E10 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://warwick.ac.uk/fac/soc/economics/research/w ... werp_1104_bloise.pdf
Related works:
Chapter: An Argument for Positive Nominal Interest (2017)
Working Paper: An argument for positive nominal interest (2015) 
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:wrk:warwec:1104
Access Statistics for this paper
More papers in The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Margaret Nash ().