Showing papers by "Nobuhiro Kiyotaki published in 2019"
TL;DR: In this paper, the authors present a model of monetary economy with different levels of liquidity across assets and examine what role government policy might have through open market operations that change the mix of assets held by the private sector.
Abstract: This paper presents a model of monetary economy with dier- ences in liquidity across assets. Our purpose is to study how aggre- gate production and asset prices ‡uctuate with shocks to productivity and liquidity. In so doing, we examine what role government policy might have through open market operations that change the mix of assets held by the private sector. We also show that certain apparent anomalies of asset markets are in fact normal features of a monetary economy in which the circulation of money is essential for a better allocation of resources.
50 citations