A Dynamic Analysis of Nash Equilibria in Search Models with Fiat Money

• Tác giả: Federico Bonetto, Maurizio Iacopetta
• Ngôn ngữ: eng
• Ký hiệu phân loại: 332.46 Monetary policy
• Thông tin xuất bản: 2018
• Bộ sưu tập: Báo, Tạp chí
• ID: 161931

Tóm tắt

We study the rise in the acceptability fiat money in a Kiyotaki-Wright economy by developing a method that can determine dynamic Nash equilibria for a class of search models with genuine heterogenous agents. We also address open issues regarding the stability properties of pure strategies equilibria and the presence of multiple equilibria. Experiments illustrate the liquidity conditions that favor the transition from partial to full acceptance of fiat money, and the effects of inflationary shocks on production, liquidity, and trade.