Short-Run and Long-Run Effects of Changes in Money in a Random-Matching Model
AbstractA random-matching model of money is used to deduce the effects of a once-for-all change in the quantity of money. It is shown that the change has short-run effects that are predominantly real and long-run effects that are in the direction of being predominantly nominal provided that the change is random and people learn its realization 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. Copyright 1997 by the University of Chicago.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Political Economy.
Volume (Year): 105 (1997)
Issue (Month): 6 (December)
Contact details of provider:
Web page: http://www.journals.uchicago.edu/JPE/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Araujo, Luis & Shevchenko, Andrei, 2006. "Price dispersion, information and learning," Journal of Monetary Economics, Elsevier, vol. 53(6), pages 1197-1223, September.
- Klaus Rainer Schenk-Hoppé, . "Stochastic Tastes and Money in a Neo-Keynesian Economy," IEW - Working Papers 088, Institute for Empirical Research in Economics - University of Zurich.
- Brett Katzman & John Kennan & Neil Wallace, 1999.
"Optimal Monetary Impulse-Response Functions in a Matching Model,"
NBER Working Papers
7425, National Bureau of Economic Research, Inc.
- Brett Katzman & John Kennan & Neil Wallace, 1999. "Optimal monetary impulse-response functions in a matching model," Working Papers 595, Federal Reserve Bank of Minneapolis.
- Araujo, Luis & Camargo, Braz, 2006. "Information, learning, and the stability of fiat money," Journal of Monetary Economics, Elsevier, vol. 53(7), pages 1571-1591, October.
- Aleksander Berentsen & Gabriele Camera & C hristopher W aller, 2005.
"The Distribution Of Money Balances And The Nonneutrality Of Money,"
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 46(2), pages 465-487, 05.
- Aleksander Berentsen & Gabriele Camera & Christopher Waller, . "The Distribution of Money Balances and the Non-Neutrality of Money," IEW - Working Papers 220, Institute for Empirical Research in Economics - University of Zurich.
- Besancenot, Damien & Rocheteau, Guillaume & Vranceanu, Radu, 2000. "Search, Price Illusion and Welfare," Journal of Macroeconomics, Elsevier, vol. 22(1), pages 109-124, January.
- Luis Araujo & Braz Camargo, 2005.
"Monetary Equilibrium with Decentralized Trade and Learning,"
UWO Department of Economics Working Papers
20051, University of Western Ontario, Department of Economics.
- Araújo, Luis Fernando de Oliveira & Camargo, Braz Ministério de, 2010. "Monetary equilibrium with decentralized trade and learning," Textos para discussÃ£o 222, Escola de Economia de São Paulo, Getulio Vargas Foundation (Brazil).
- Williamson, Stephen D. & Wright, Randall, 2010.
"New Monetarist Economics: Models,"
21030, University Library of Munich, Germany.
- Faig, Miquel & Li, Zhe, 2009.
"The welfare costs of expected and unexpected inflation,"
Journal of Monetary Economics,
Elsevier, vol. 56(7), pages 1004-1013, October.
- Zhe Li & Miquel Faig, 2007. "The Welfare Cost of Expected and Unexpected Inflation," 2007 Meeting Papers 125, Society for Economic Dynamics.
- Jones, Larry E. & Manuelli, Rodolfo E., 2001. "Volatile Policy and Private Information: The Case of Monetary Shocks," Journal of Economic Theory, Elsevier, vol. 99(1-2), pages 265-296, July.
- Katzman, Brett & Kennan, John & Wallace, Neil, 2003.
"Output and price level effects of monetary uncertainty in a matching model,"
Journal of Economic Theory,
Elsevier, vol. 108(2), pages 217-255, February.
- Katzman,B. & Kennan,J. & Wallace,N., 2001. "Output and price level effects of monetary uncertainty in a matching model," Working papers 1, Wisconsin Madison - Social Systems.
- W A Razzak, 2001. "Money in the era of inflation targeting," Reserve Bank of New Zealand Discussion Paper Series DP2001/02, Reserve Bank of New Zealand.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.