Optimal Monetary Impulse-Response Functions in a Matching Model

Brett Katzman, John Kennan and Neil Wallace ()

No 7425, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The effects on ex ante optima of a lag in seeing monetary realizations are studied using a matching model of money. The main new ingredient in the model is meetings in which producers have more information than consumers. A consequence is that increases in the amount of money that occur with small enough probability can have negative impact effects on output, because it is optimal to shut down trade in such low probability meetings rather than have lower output when high probability realizations occur. The information lag also produces prices that do not respond much to current monetary realizations.

JEL-codes: E30 E40 (search for similar items in EconPapers)
Date: 1999-11
New Economics Papers: this item is included in nep-dge and nep-mon
Note: EFG
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published as “Output and Price Level Effects of Monetary Uncertainty in a Matching Model,” (with Brett Katzman and Neil Wallace), Journal of Economic Theory, 108(2), February 2003, 217-255.

Downloads: (external link)
http://www.nber.org/papers/w7425.pdf (application/pdf)

Related works:
Working Paper: Optimal monetary impulse-response functions in a matching model (1999)
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:nbr:nberwo:7425

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w7425

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().