Title: A Simple Model of Money: Building a Model of Money
Abstract:IN THIS BOOK, we will try to learn about monetary economies through the construction of a series of model economies that replicate essential features of actual monetary economics. All such models are ...IN THIS BOOK, we will try to learn about monetary economies through the construction of a series of model economies that replicate essential features of actual monetary economics. All such models are simplifications of the complex economic reality in which we live. They may be useful, however, if they are able to illustrate key elements of the behavior of people who choose to hold money and to predict the reactions of important economic variables such as output, prices, government revenue, and public welfare to changes in policies that involve money. We start our analysis with the simplest conceivable model of money. We will learn what we can from this simple model and then ask how the model fails to adequately represent reality. Throughout the book, we try to correct the model's oversights by adding, one by one, the features it lacks.Read More
Publication Year: 2011
Publication Date: 2011-05-09
Language: en
Type: book-chapter
Indexed In: ['crossref']
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