Liquidity effects in non Ricardian economies
Pre-print, Working paper: It has often been found difficult to generate a liquidity effect (i.e. a negative effect of monetary injections on the nominal interest rate) in the traditional "Ricardian" stochastic dynamic model with a single infinitely lived household. We show that moving to a non Ricardian environment where new agents enter the economy in each period allows to generate such a liquidity effect.
Keywords JEL
Keywords
- Liquidity effect
- Non Ricardian economies
Internal reference
- PSE Working Papers n°2005-47
URL of the HAL notice
Version
- 1