Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
884319 | Journal of Economic Behavior & Organization | 2009 | 14 Pages |
Abstract
In this paper we model an OLG economy à la Kiyotaki and Moore whose novel feature is the role of money as a store of value and of bequest as a source of funds to be “invested” in landholding. The dynamics generated by the model are generally characterized by irregular cyclical trajectories and, under special configuration of the parameters, a strange attractor appears. In this setting, an expansionary monetary policy may have a stabilizing role due to the interaction between money holding and the accumulation of borrowers’ net worth.
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
Tiziana Assenza, Anna Agliari, Domenico Delli Gatti, Emiliano Santoro,