Optimal government policies in a cash-in-advance environment.

Title: Optimal government policies in a cash-in-advance environment.
Identifier: AAI9405575
identifier: 9405575
Creator: Pipinis, Spyridon Panagiotou.
Contributor: Adviser: Salih Neftci
Date: 1993
Language: English
Publisher: City University of New York.
Subject: Economics, Theory | Political Science, Public Administration
Abstract: This thesis is concerned with the derivation of optimal monetary and fiscal policy in a typically employed monetary economy with optimizing agents and endogenous production. The demand for money is motivated by a cash-in-advance constraint which forces individuals to hold money for transaction purposes.;We derive the optimal monetary and fiscal policy by integrating the behavior of all three agents to one, in a dynamic competitive equilibrium context, and solve only the government's problem.;In addition to policy recommendations, the results show stochastic fluctuations in the total-output time path, representing periods of recessions and periods of expansions due to the stochastic component of the model economy. They also show that the level and direction of this time path depend on the particular fiscal and monetary policy that the government follows. Money has real effects in this setting.
Type: dissertation
Source: PQT Legacy CUNY.xlsx
degree: Ph.D.