This paper presents a pure currency economy with a nondegenerate distribution of money holdings in which, as conjectured by Wallace (Quarterly Journal of Economics 129, 259–274, 2014), there are transfer schemes financed by money creation that improve ex ante welfare relative to no-intervention. Differently from what was advocated by Wallace, pecuniary-like externalities, rather than the need to share liquidity risks, are responsible for the result.

Amendola, N., Ferraris, L., Mattesini, F. (2021). Liquidity externalities and the Wallace conjecture. MACROECONOMIC DYNAMICS, 25(6), 1578-1588 [10.1017/S1365100519000798].

Liquidity externalities and the Wallace conjecture

Amendola, N;Ferraris, L
;
Mattesini, F
2021-01-01

Abstract

This paper presents a pure currency economy with a nondegenerate distribution of money holdings in which, as conjectured by Wallace (Quarterly Journal of Economics 129, 259–274, 2014), there are transfer schemes financed by money creation that improve ex ante welfare relative to no-intervention. Differently from what was advocated by Wallace, pecuniary-like externalities, rather than the need to share liquidity risks, are responsible for the result.
2021
Pubblicato
Rilevanza internazionale
Articolo
Esperti anonimi
Settore SECS-P/01 - ECONOMIA POLITICA
Settore ECON-01/A - Economia politica
English
Con Impact Factor ISI
Amendola, N., Ferraris, L., Mattesini, F. (2021). Liquidity externalities and the Wallace conjecture. MACROECONOMIC DYNAMICS, 25(6), 1578-1588 [10.1017/S1365100519000798].
Amendola, N; Ferraris, L; Mattesini, F
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2108/224417
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