This paper studies an economy with trading frictions, and liquid outside bonds in a model à la Lagos and Wright [17]. A no-arbitrage condition between nominal assets characterizes coexistence between money and nominal bonds and results in the Fisher equation endoge- nously determining the equilibrium nominal interest rate.

Money, bonds and the nominal interest rate

Pietro Senesi
2018-01-01

Abstract

This paper studies an economy with trading frictions, and liquid outside bonds in a model à la Lagos and Wright [17]. A no-arbitrage condition between nominal assets characterizes coexistence between money and nominal bonds and results in the Fisher equation endoge- nously determining the equilibrium nominal interest rate.
2018
978-88-6991-150-7
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11574/184665
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