Monetary policy and dynamic efficiency in economies of overlapping generations |
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| Authors: | Gaetano Bloise Herakles Polemarchakis |
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| Affiliation: | Department of Economics, University of Rome III, Rome, Italy.;Department of Economics, University of Warwick, Coventry, UK. Email: |
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| Abstract: | In an economy of overlapping generations, money, distinct from debt, provides liquidity and is dominated as a store of value. Nominal rates of interest that are low, but do not vanish, eliminate equilibrium allocations far from Pareto optimal allocations. |
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| Keywords: | nominal rate of interest monetary equilibrium intertemporal optimality |
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