EconPapers    
Economics at your fingertips  
 

Monetary, Fiscal, and Bank Regulatory Policy in a Simple Monetary Growth Model

Joydeep Bhattacharya, Elisabeth Huybens, Mark Guzman and Bruce Smith

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: We consider an otherwise conventional monetary growth model in which spatial separation and limited communication create a transactions role for currency, and stochastic relocation gives rise to financial intermediaries. In this framework we consider how changes in fiscal and monetary policy, and in reserve requirements, affect inflation, capital formation, and nominal interest rates. There is also considerable scope for multiple equilibria; we show how reserve requirements that never bind along actual equilibrium paths can play an important role in avoiding undesirable equilibria. Finally, we demonstrate that changes in (apparently) nonbinding reserve requirements can have significant real effects.

Date: 1997-05-01
References: Add references at CitEc
Citations: View citations in EconPapers (30)

Published in International Economic Review, May 1997, vol. 3 no. 2, pp. 321-350

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Monetary, Fiscal, and Bank Regulatory Policy in a Simple Monetary Growth Model (1995)
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:isu:genres:5136

Access Statistics for this paper

More papers in Staff General Research Papers Archive from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().

 
Page updated 2025-03-31
Handle: RePEc:isu:genres:5136