New Monetarism in Continuous Time

Methods and Applications

Datos Bibliográficos

ID9716587
AutoresMichael Choi (0000-0003-3525-9613, University of California, Irvine), Guillaume Rocheteau (University of California, Irvine & LEMMA, University of Paris 2, France)
Año2021
Volumen131
Número634
Páginas658-696
Fecha de publicación2021-03-03
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Economic Journal (JOURNAL)
Identificadores de la revistaISSN: 0013-0133 • E-ISSN: 1468-0297
EditorialOxford University Press (PUBLISHER • GB)
DOI10.1093/ej/ueaa093
OpenAlexW3043824814
IdiomaEN
Referencias citadas41

We develop a New Monetarist model in continuous time where agents trade continuously in competitive markets and infrequently in pairwise meetings. Agents can produce and consume both in flows over time intervals and in discrete quantities at points in time. We detail the methodology to solve individual optimisation problems and characterise the full set of perfect foresight equilibria. We illustrate the role of continuous time and the tractability of our approach with three applications related to monetary policy: (i) forward guidance with policy announcements; (ii) aggregate demand management and firm entry; (iii) open market operations with partially liquid assets

Aggregate (composite · Economics · Futures studies · Mathematical economics · Microeconomics · Monetarism · Monetary economics · Monetary policy · Pairwise comparison · Set (abstract data type · Artificial Intelligence · Computer Science · Economic theories and models · Economic Theory and Policy · Monetary Policy and Economic Impact