An Argument for Positive Nominal Interest

Gaetano Bloise and Herakles Polemarchakis ()
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Herakles Polemarchakis: University of Warwick

Chapter Chapter 15 in Sunspots and Non-Linear Dynamics, 2017, pp 363-385 from Springer

Abstract: 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)
Date: 2017
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Working Paper: An argument for positive nominal interest (2015)
Working Paper: An argument for positive nominal interest (2015)
Working Paper: An argument for positive nominal interest (2015)
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DOI: 10.1007/978-3-319-44076-7_15

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