Another note on deadweight loss

Michael Stutzer

No 63, Staff Report from Federal Reserve Bank of Minneapolis

Abstract: Our defense of these postulates is two-fold. First we compare them with existing alternative theories. Second, we provide an illustrative model which : (a) is consistent with the postulates, (b) implies rate-of-return dominance under suitable legal restrictions, and (c) addresses monetary policy questions with standard welfare economics and, in particular, rationalizes in terms of price discrimination a debt management policy that ?tailors debt issues to the needs of the market.?

Date: 1981
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