Active intermediation in a monetary overlapping generations economy
نویسندگان
چکیده
منابع مشابه
Active Intermediation in a Monetary Overlapping Generations Economy
It is now widely believed that government intervention is essential to ensure Pareto efficiency in the standard overlapping generations economy with nonaltruistic agents. This paper argues that the normal profit-seeking activities of private intermediaries—missing from the standard overlapping generations economy—would tend to eliminate the need for such government intervention. A private earni...
متن کاملActive intermediation in a monetary overlapping generations economy1
This paper establishes that the profit-seeking activities of private intermediaries can ensure Pareto efficiency in the standard pure-exchange monetary overlapping generations economy without the need for government monetary or fiscal policy intervention. Moreover, these profit-seeking activities are shown to rule out all aperiodic and kperiodic cycles for k greater than 2. Contrary to much rec...
متن کاملActive and passive monetary policy in an overlapping generations model
In a standard overlapping generations model, active monetary policy reinforces mechanisms that lead to equilibrium indeterminacy and to countercyclical behavior of young-age consumption. The policy rule which minimizes inflation volatility can be active or passive, depending on the characteristics of shocks and the risk aversion of households. Inflation forecast errors are always greater under ...
متن کاملA Stochastic Overlapping Generations Economy with Inheritance
An overlapping generations model of an exchange economy is considered, with individuals having a finite expected life-span. As the model is designed to be a fully playable game, conditions concerning birth, death, inheritance and bequests are fully specified.
متن کاملOverlapping generations , intermediation , and the First Welfare Theorem
The First Welfare Theorem fails to hold for standard pure exchange overlapping generations economies because no agent exploits the profit opportunities which can arise from mediating intertemporal trade. This paper modifies the standard economy by introducing an optimizing corporate intermediary which distributes net earnings back to consumer-shareholders. The Pareto inefficient no-trade state,...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Economic Dynamics and Control
سال: 1998
ISSN: 0165-1889
DOI: 10.1016/s0165-1889(97)00105-x