Who is Afraid of the Friedman Rule

dc.contributor.author Singh, Rajesh
dc.contributor.author Haslag, Joseph
dc.contributor.author Martin, Antoine
dc.contributor.author Bhattacharya, Joydeep
dc.contributor.department Department of Economics (LAS)
dc.date 2021-08-11T17:50:21.000
dc.date.accessioned 2021-08-14T04:32:31Z
dc.date.available 2021-08-14T04:32:31Z
dc.date.issued 2008-04-01
dc.description.abstract <p>We explore the connection between optimal monetary policy and heterogeneity among agents in a standard monetary economy with two types of agents where the stationary distribution of money holdings is nondegenerate. Sans type-specific fiscal policy, we show that the zero-nominal-interest rate policy (the Friedman rule) does not maximize type-specific welfare; it may not maximize aggregate ex ante social welfare either. Indeed, one or, more surprisingly, both types may benefit if the central bank deviates from the Friedman rule.</p>
dc.description.comments <p>This article is published as Bhattacharya, Joydeep, Joseph Haslag, Antoine Martin, and Rajesh Singh. "Who is afraid of the Friedman rule?." <em>Economic Inquiry</em> 46, no. 2 (2008): 113-130. </p>
dc.format.mimetype application/pdf
dc.identifier archive/lib.dr.iastate.edu/econ_las_pubs/815/
dc.identifier.articleid 1831
dc.identifier.contextkey 24278126
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath econ_las_pubs/815
dc.identifier.uri https://dr.lib.iastate.edu/handle/20.500.12876/nrQBQEGz
dc.language.iso en
dc.source.bitstream archive/lib.dr.iastate.edu/econ_las_pubs/815/2008_Bhattacharya_WhoAfraid.pdf|||Sat Jan 15 02:07:11 UTC 2022
dc.source.uri 10.1111/j.1465-7295.2007.00068.x
dc.subject.disciplines Finance
dc.subject.disciplines Political Economy
dc.subject.disciplines Social Welfare
dc.title Who is Afraid of the Friedman Rule
dc.type article
dc.type.genre article
dspace.entity.type Publication
relation.isAuthorOfPublication b0ee400a-97b2-4e8f-9788-e92d754b1a5c
relation.isAuthorOfPublication 56f37f39-ec2a-4b0b-b491-e32fba8e2c73
relation.isOrgUnitOfPublication 4c5aa914-a84a-4951-ab5f-3f60f4b65b3d
File
Original bundle
Now showing 1 - 1 of 1
No Thumbnail Available
Name:
2008_Bhattacharya_WhoAfraid.pdf
Size:
196.56 KB
Format:
Adobe Portable Document Format
Description:
Collections