Search , Money and Capital : A Neoclassical Dichotomy ¤
نویسنده
چکیده
Recent work has reduced the gap between search-based monetary theory and mainstream macroeconomics by incorporating into the search model some centralized markets as well as some decentralized markets where money is essential. This paper takes a further step towards this integration by introducing labor, capital and neoclassical ̄rms. The resulting framework nests the search-theoretic monetary model and a standard neoclassical growth model as special cases. Perhaps surprisingly, it also exhibits a dichotomy: one can determine the equilibrium path for the value of money independently of the paths of consumption, investment and employment in the centralized market. ¤We thank K. Burdett, G. Eudey, R. Lagos, M. Molico and C. Waller for their input, as well as the NSF and the Cleveland Fed for research support.
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