Browsing Department of Economics (MU) by Title "Working papers (Department of Economics);WP 04-15"
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Sub-Optimality of the Friedman Rule in Townsend's Turnpike and Limited Communication Models of money: Do finite lives and initial dates matter?
(Department of Economics, 2004)We construct an economy populated with infinitely-lived agents and show that the Friedman rule is suboptimal. We do that by showing that our economy and an overlapping generations model in which the Friedman rule is known ...