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 originaleEnglish
pagine (da-a)656-669
Numero di pagine14
RivistaJOURNAL OF ECONOMIC BEHAVIOR & ORGANIZATION
Volume72
Stato di pubblicazionePubblicato - 2009

Keywords

  • Borrowing constraints
  • Complex dynamics
  • Credit cycles
  • Monetary policy

Fingerprint Entra nei temi di ricerca di 'Borrowing Constraints and Complex Dynamics in an OLG Framework'. Insieme formano una fingerprint unica.

Cita questo