Money and Nominal Bonds

Alessandro Marchesiani () and Pietro Senesi

MPRA Paper from University Library of Munich, Germany

Abstract: This paper studies an economy with trading frictions, ex post heterogeneity and nominal bonds in a model à la Lagos and Wright (2005). It is shown that a strictly positive interest rate is a sufficient condition for the allocation with nominal bonds to be welfare improving. This result comes from the protection against the inflation tax.

Keywords: money; search; nominal bonds and taxation (search for similar items in EconPapers)
JEL-codes: E40 H20 H63 (search for similar items in EconPapers)
Date: 2007-11-22
New Economics Papers: this item is included in nep-cba, nep-dge, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://mpra.ub.uni-muenchen.de/9417/1/MPRA_paper_9417.pdf original version (application/pdf)

Related works:
Journal Article: MONEY AND NOMINAL BONDS (2009)
Working Paper: Money and Nominal Bonds (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:9417

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