Heterogeneity, redistribution, and the Friedman rule

dc.contributor.author Bhattacharya, Joydeep
dc.contributor.author Haslag, Joseph
dc.contributor.author Martin, Antoine
dc.contributor.department Economics
dc.date 2018-05-20T20:33:46.000
dc.date.accessioned 2020-06-30T02:08:26Z
dc.date.available 2020-06-30T02:08:26Z
dc.date.copyright Sat Jan 01 00:00:00 UTC 2005
dc.date.issued 2005-05-05
dc.description.abstract <p>We study monetary models with nondegenerate stationary distributions of money holdings. We find that the Friedman rule does not typically maximize ex post social welfare. An increase in the rate of growth of the money supply has two effects: the standard distortionary, or rate‐of‐return, effect makes money a less desirable asset for all moneyholders. A second, redistributive effect, creates a transfer from one type of agent to the other. An increase in the rate of growth of money away from the Friedman rule can produce a rate‐of‐return effect that dominates the standard effect.</p>
dc.description.comments <p>This article is published as Heterogeneity, Redistribution, and the Friedman rule (with A. Martin and J. Haslag), <em>International Economic Review</em>, 46 (2), 437-454, 2005. DOI: <a href="https://dx.doi.org/10.1111/j.1468-2354.2005.00327.x" target="_blank">10.1111/j.1468-2354.2005.00327.x</a>. Posted with permission.</p>
dc.format.mimetype application/pdf
dc.identifier archive/lib.dr.iastate.edu/econ_las_pubs/607/
dc.identifier.articleid 1613
dc.identifier.contextkey 12122685
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath econ_las_pubs/607
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/21841
dc.language.iso en
dc.source.uri https://lib.dr.iastate.edu/cgi/viewcontent.cgi?article=1190&context=econ_las_workingpapers
dc.subject.disciplines Economic History
dc.subject.disciplines Economic Theory
dc.subject.disciplines Finance
dc.subject.disciplines Growth and Development
dc.subject.disciplines Income Distribution
dc.subject.disciplines Labor Economics
dc.title Heterogeneity, redistribution, and the Friedman rule
dc.type article
dc.type.genre article
dspace.entity.type Publication
relation.isOrgUnitOfPublication 4c5aa914-a84a-4951-ab5f-3f60f4b65b3d