Shared more. Cited more. Safe forever.
    • advanced search
    • submit works
    • about
    • help
    • contact us
    • login
    View Item 
    •   MOspace Home
    • University of Missouri-Columbia
    • College of Arts and Sciences (MU)
    • Department of Economics (MU)
    • Economics publications (MU)
    • View Item
    •   MOspace Home
    • University of Missouri-Columbia
    • College of Arts and Sciences (MU)
    • Department of Economics (MU)
    • Economics publications (MU)
    • View Item
    JavaScript is disabled for your browser. Some features of this site may not work without it.
    advanced searchsubmit worksabouthelpcontact us

    Browse

    All of MOspaceCommunities & CollectionsDate IssuedAuthor/ContributorTitleIdentifierThesis DepartmentThesis AdvisorThesis SemesterThis CollectionDate IssuedAuthor/ContributorTitleIdentifierThesis DepartmentThesis AdvisorThesis Semester

    Statistics

    Most Popular ItemsStatistics by CountryMost Popular AuthorsStatistics by Referrer

    Who is Afraid of the Friedman Rule?

    Bhattacharya, Joydeep
    Haslag, Joseph H.
    Martin, Antoine
    Singh, Rajesh
    View/Open
    [PDF] WhoAfraidFriedmanRule.pdf (368.9Kb)
    Date
    2004
    Format
    Working Paper
    Metadata
    [+] Show full item record
    Abstract
    In this paper, we explore the connection between optimal monetary policy and heterogeneity among agents. We study a standard monetary economy with two types of agents in which the stationary distribution of money holdings is non-degenerate. Sans type-specific fiscal policy, we show that the zero-nominal-interest rate policy (the Friedman rule) does not maximize type-specific welfare; it may not maximize aggregate social welfare either. Indeed, one or, more surprisingly, both types may benefit if the central bank deviates from the Friedman rule. Our results suggest a positive explanation for why central banks around the world do not implement the Friedman rule.
    URI
    http://hdl.handle.net/10355/2643
    Part of
    Working papers (Department of Economics);WP 04-21
    Part of
    Economics publications
    Citation
    Department of Economics, 2004
    Collections
    • Economics publications (MU)

    Send Feedback
    hosted by University of Missouri Library Systems
     

     


    Send Feedback
    hosted by University of Missouri Library Systems