Liquidity, business cycles, and monetary policy
Kiyotaki, Nobuhiro; and Moore, John
(2019)
Liquidity, business cycles, and monetary policy
Journal of Political Economy, 127 (6).
2926 - 2966.
ISSN 0022-3808
The paper presents a model of a monetary economy where there are differences in liquidity across assets. Money circulates because it is more liquid than other assets, not because it has any special function. The model is used to investigate how aggregate activity and asset prices fluctuate with shocks to productivity and liquidity, and to examine what role government policy might have through open market operations that change the mix of assets held by the private sector.
| Item Type | Article |
|---|---|
| Copyright holders | © 2019 University of Chicago |
| Keywords | monetary economy, liquidity, government policy, open market operations, private sector |
| Departments | Economics |
| DOI | 10.1086/701891 |
| Date Deposited | 16 Oct 2019 14:15 |
| Acceptance Date | 2018-12-05 |
| URI | https://researchonline.lse.ac.uk/id/eprint/102128 |