Review The Role of Overlapping-Generations Models in Monetary Economics
The Role of Overlapping-Generations Models in Monetary Economics High quality books The Role of Overlapping-Generations Models in Monetary Economics By: Published on 1984 by The main arguments of this paper can be summarized as follows. (1) The overlapping-generations (OG) structure provides a useful framework for the analysis of macroeconomic issues involving intertemporal allocation. (2) As a |model of money, | the basic OG setup -- which excludes cash-in-advance or money-in-the-utility-function (MIUF) features -- is inadequate and misleading because it neglects the medium-of-exchange property that is the distinguishing characteristic of money. (3) That this neglect obtains is verified by noting that, in contrast with an axiomatic |traditional presumption, | the same aggregate leisure/consumption bundles are available in equilibria in which |money| is valued and valueless. (4) That the model may be misleading is demonstrated by examples in which three of its most striking properties ...