Market Structure and Monetary Non-neutrality
In: University of Chicago, Becker Friedman Institute for Economics Working Paper No. 2021-110
5420 Ergebnisse
Sortierung:
In: University of Chicago, Becker Friedman Institute for Economics Working Paper No. 2021-110
SSRN
SSRN
SSRN
Working paper
In: Journal of Monetary Economics, Band 76, S. 141-156
In: NBER Working Paper No. w14001
SSRN
In: NBER Working Paper No. w19260
SSRN
Working paper
In: Lecture Notes in Economics and Mathematical Systems 472
In principle, money illusion could explain the inertial adjustment of prices after changes of monetary policy. Hence, money illusion could provide an explanation of monetary non-neutrality. However, this explanation has been thoroughly discredited in modern economics. As a consequence, economists have ever since the 1970s searched for alternative explanations for nominal rigidity. These explanations are all based on the assumption of fully rational economic agents, holding rational expectations. This book argues that money illusion has been prematurely dismissed as an explanation of monetary non-neutrality. Methods of experimental economics are used to investigate the real aggregate effects of money illusion. It is shown that money illusion in fact causes (short-run) real income effects if strategic complementarity prevails. Strategic complementarity is an important characteristic of naturally occurring macroeconomies and is a recurrent theme in most models explaining nominal rigidity
SSRN
In: Lecture notes in economics and mathematical systems 472
SSRN
In: Bank of Korea WP 2021-17
SSRN
SSRN
In: Journal of economic dynamics & control, Band 29, Heft 8, S. 1361-1383
ISSN: 0165-1889
In: Eastern Economic Journal, Band 44, Heft 3
SSRN