Short-run and long-run effects of changes in money in a random matching model

Neil Wallace ()

No 568, Working Papers from Federal Reserve Bank of Minneapolis

Abstract: Using an existing random matching model of money, I show that a once-for-all change in the quantity of money has short-run effects that are predominantly real and long-run effects that are in the direction of being predominantly nominal provided (i) the quantity of money is random and (ii) people learn about what happened to it only with a lag. The change in the quantity of money comes about through a random process of discovery that does not permit anyone to deduce the aggregate amount discovered when the change actually occurs.

Keywords: Money; -; Mathematical; models (search for similar items in EconPapers)
Date: 1996
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Published in Journal of Political Economy (Vol. 105, No. 6, December 1997, pp. 1293-1307)

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Related works:
Journal Article: Short-Run and Long-Run Effects of Changes in Money in a Random-Matching Model (1997)
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedmwp:568

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