Search Results

Showing results 1 to 2 of approximately 2.

(refine search)
SORT BY: PREVIOUS / NEXT
Author:Wessel, Ryan 

Report
Money in the Production Function

Businesses hold large quantities of cash reserves, which have average returns well below their investments in tangible capital. Businesses do this because these monetary assets provide services. One implication is that money services is a factor of production in capital theoretic valuation equilibrium models. Our aggregate production function is consistent with both the classical demand for money function relationship and with extended periods of near zero short-term nominal interest rates. In our model economy, there is a 100 percent reserve requirement on all demand deposits. Demand ...
Staff Report , Paper 562

Report
Fiat Value in the Theory of Value

We explore monetary policy in a world without currency. In our world, money is a form of government debt that bears interest, which can be negative as well as positive. Services of money are a factor of production. We show that the national accounts must be revised in this world. Using our baseline economy, we determine the balanced growth paths for a set of money interest rate target policy regimes. Besides this interest rate, the only policy variable that differs across regimes is either the labor income tax rate or the inflation rate. We find that Friedman monetary satiation without ...
Staff Report , Paper 530

FILTER BY year

FILTER BY Series

FILTER BY Content Type

Report 2 items

FILTER BY Author

FILTER BY Jel Classification

E0 1 items

E00 1 items

E4 1 items

E40 1 items

E5 1 items

E50 1 items

show more (3)

PREVIOUS / NEXT