Sticky prices, money, and business fluctuations

Can nominal contracts create monetary nonneutrality if they arise endogenously in general equilibrium? Yes, if (1) agents have complete information about the money stock and (2) shocks to the system are purely redistributive and private information, precluding conventional insurance markets. Without contracts, money is neutral toward aggregate quantities. However, risk-sharing between suppliers and demanders creates an incentive for both parties to use nominal contracts. in particular, if an increase in the money growth rate signals a rise in the dispersion of shocks to demanders' wealth, then prices adjust only partially to monetary shocks and money is positively associated with output.Prices ; Money theory ; Business cycles

Sticky Prices, Money and Business Fluctuations

Can nominal contracts make a difference for the neutrality of money if these arise endogenously in general equilibrium? This paper utilizes aversion of Lucas's seminal equilibrium business cycle theory to address this question. However, we depart from Lucas in assuming that (1) agents have complete information about the money stock; (ii) fundamental shocks to the system are purely redistributive and private information; and (iii) moral hazard precludes conventional insurance markets.With an exogenous restriction on contracts, money is fully neutral. But, when this restrictionis lifted, efficient risk-sharing between suppliers and demanders leads to a potential nonneutralitv of money. In particular, if an increase in the money growth rate signals a rise in the dispersion of shocks to demanders' wealth,then prices adjust only partially to monetary shocks and there is a positive association between money and output.

Combinatorial Proofs of Fermat\u27s, Lucas\u27s, and Wilson\u27s Theorems

No abstract provided in this article

The prehistory of rational expectations

Economic Theory

On Generalization of Fibonacci, Lucas and Mulatu Numbers

Fibonacci numbers, Lucas numbers and Mulatu numbers are built in the same method. The three numbers differ in the first term, while the second term is entirely the same. The next terms are the sum of two successive terms. In this article, generalizations of Fibonacci, Lucas and Mulatu (GFLM) numbers are built which are generalizations of the three types of numbers. The Binet formula is then built for the GFLM numbers, and determines the golden ratio, silver ratio and Bronze ratio of the GFLM numbers. This article also presents generalizations of these three types of ratios, called Metallic ratios. In the last part we state the Metallic ratio in the form of continued fraction and nested radicals

The New Keynsesian Economics and the Output-Inflation Trade-off

macroeconomics, New Keynsesian Economics, Output-Inflation Trade-off