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dc.contributor.authorMotta, Giorgio
dc.contributor.authorTirelli, Patrizio
dc.date.accessioned2017-05-10T03:52:12Z
dc.date.available2017-05-10T03:52:12Z
dc.date.issued2015
dc.identifier.issn1365-1005
dc.identifier.doi10.1017/S1365100513000394
dc.identifier.urihttp://hdl.handle.net/10072/336480
dc.description.abstractThe limited asset-market participation hypothesis has triggered a debate on DSGE models' determinacy when the central bank implements a standard Taylor rule. We reconsider the issue here in the context of an exogenous money supply rule, documenting the role of nominal and real frictions in determining these results. A general conclusion is that frictions matter for stability insofar as they redistribute income between Ricardian and non-Ricardian households when shocks hit the economy. Finally, we extend the model to allow for the possibility that consumers who do not participate in the market for interest-bearing securities hold money. In this case, endogenous monetary transfers between the two groups make it possible to smooth consumption differences, and the model is determinate, provided that the non-negativity constraint on individual money holdings is satisfied.
dc.description.peerreviewedYes
dc.languageEnglish
dc.language.isoeng
dc.publisherCambridge University Press
dc.relation.ispartofpagefrom288
dc.relation.ispartofpageto310
dc.relation.ispartofissue2
dc.relation.ispartofjournalMacroeconomic Dynamics
dc.relation.ispartofvolume19
dc.subject.fieldofresearchEconomic Theory not elsewhere classified
dc.subject.fieldofresearchEconomic Theory
dc.subject.fieldofresearchApplied Economics
dc.subject.fieldofresearchEconometrics
dc.subject.fieldofresearchcode140199
dc.subject.fieldofresearchcode1401
dc.subject.fieldofresearchcode1402
dc.subject.fieldofresearchcode1403
dc.titleMoney Targeting, Heterogeneous Agents, and Dynamic Instability
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
gro.hasfulltextNo Full Text
gro.griffith.authorTirelli, Patrizio


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