Liquidity Effects in Non‐Ricardian Economies

Jean-Pascal Benassy

Scandinavian Journal of Economics, 2006, vol. 108, issue 1, 65-80

Abstract: It has often been found difficult to generate a liquidity effect (i.e., a negative effect of monetary injections on the nominal interest rate) in the traditional “Ricardian” stochastic dynamic model with a single infinitely lived household. We show that moving to a non‐Ricardian environment where new agents enter the economy in each period allows such a liquidity effect to be generated.

Date: 2006
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https://doi.org/10.1111/j.1467-9442.2006.00440.x

Related works:
Working Paper: Liquidity effects in non-Ricardian economies (2006)
Working Paper: Liquidity effects in non Ricardian economies (2005)
Working Paper: Liquidity effects in non Ricardian economies (2005)
Working Paper: Liquidity Effects in non-Ricardian Economies (2004)
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