Output and price level effects of monetary uncertainty in a matching model

Brett Katzman, John Kennan, Neil Wallace

Research output: Contribution to journalArticle

14 Scopus citations

Abstract

Monetary uncertainty and information lags are put into a random matching model so that the resulting setting has some meetings in which producers are relatively informed and others in which consumers are relatively informed. For that setting, the ex ante socially optimal way to conduct trade is characterized. The optimum can display a variety of relationships between money and total output and the price level. While the price level is always sticky, even the direction of its response and that of total output depend on the magnitude of the lag and on subtle features of the serial correlation properties of the money supply.

Original languageEnglish (US)
Pages (from-to)217-255
Number of pages39
JournalJournal of Economic Theory
Volume108
Issue number2
DOIs
StatePublished - Feb 1 2003

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

Fingerprint Dive into the research topics of 'Output and price level effects of monetary uncertainty in a matching model'. Together they form a unique fingerprint.

  • Cite this