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Monetary policy and dynamic efficiency in economies of overlapping generations
Author(s) -
Bloise Gaetano,
Polemarchakis Herakles
Publication year - 2006
Publication title -
international journal of economic theory
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 11
eISSN - 1742-7363
pISSN - 1742-7355
DOI - 10.1111/j.1742-7363.2006.0037.x
Subject(s) - economics , overlapping generations model , market liquidity , debt , value (mathematics) , monetary policy , monetary economics , pareto optimal , pareto principle , economy , microeconomics , macroeconomics , multi objective optimization , operations management , machine learning , computer science
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.