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.
Lingua originale | English |
---|---|
pagine (da-a) | 656-669 |
Numero di pagine | 14 |
Rivista | JOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION |
Volume | 72 |
Stato di pubblicazione | Pubblicato - 2009 |
Keywords
- Borrowing constraints
- Complex dynamics
- Credit cycles
- Monetary policy