Inflation and entry costs in a monetary search model

IF 1.3 3区 经济学 Q3 ECONOMICS
Ryoji Hiraguchi , Keiichiro Kobayashi
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引用次数: 0

Abstract

In this study, we construct a variant of the Lagos–Wright monetary model in which both buyers and sellers optimally decide whether to enter decentralized market by paying fixed entry costs. In the decentralized market, the sellers produce the intermediate inputs which are necessary to produce the general good traded in the centralized market. We show that the Friedman rule of setting nominal interest rate to zero may not be optimal. The optimal inflation rate is derived explicitly for specific functional forms. It is shown that the optimal inflation rate is lower for lower buyer entry costs, because the lower entry costs generate the buyer’s congestion leading to lower benefit from holding money, which must be balanced by lower cost of money holdings. It is also shown that the optimal inflation is lower for higher seller entry costs.
货币搜索模型中的通货膨胀和进入成本
在本研究中,我们构建了拉各斯-赖特货币模型的一个变体,在该模型中,买卖双方都通过支付固定的进入成本来最优地决定是否进入分散市场。在去中心化市场中,卖方生产中间投入物,这些投入物是生产在中心化市场中交易的一般商品所必需的。我们证明了将名义利率设定为零的弗里德曼规则可能不是最优的。对于特定的函数形式,明确地导出了最优通货膨胀率。结果表明,当购买者进入成本较低时,最优通货膨胀率较低,因为较低的进入成本会导致购买者拥塞,从而导致持有货币的收益降低,而这必须通过较低的持有货币成本来平衡。研究还表明,卖方进入成本越高,最优通货膨胀率越低。
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来源期刊
CiteScore
2.50
自引率
7.10%
发文量
53
审稿时长
76 days
期刊介绍: Since its inception in 1979, the Journal of Macroeconomics has published theoretical and empirical articles that span the entire range of macroeconomics and monetary economics. More specifically, the editors encourage the submission of high quality papers that are concerned with the theoretical or empirical aspects of the following broadly defined topics: economic growth, economic fluctuations, the effects of monetary and fiscal policy, the political aspects of macroeconomics, exchange rate determination and other elements of open economy macroeconomics, the macroeconomics of income inequality, and macroeconomic forecasting.
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