Money, Interest and Policy Dynamic General Equilibrium in a NonRicardian World

Bénassy, Jean-Pascal

ISBN 10: 0262026139 / ISBN 13: 9780262026130

Published by MIT Press, Cambridge, Mass, 2007

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Seller Inventory # c12735

Bibliographic Details

• Title: Money, Interest and Policy Dynamic General Equilibrium in a NonRicardian World
• Publisher: MIT Press, Cambridge, Mass
• Publication Date: 2007
• Language: English
• ISBN 10: 0262026139
• ISBN 13: 9780262026130
• Binding: Hardcover
• Condition: Very Good
• Dust Jacket Condition: Very Good
• Seller catalogs:
  • Economics

About this title

Synopsis

An important recent advancement in macroeconomics is the development of dynamic stochastic general equilibrium (DSGE) macromodels. The use of DSGE models to study monetary policy, however, has led to paradoxical and puzzling results on a number of central monetary issues including price determinacy and liquidity effects. In Money, Interest, and Policy, Jean-Pascal Bénassy argues that moving from the standard DSGE models which he calls "Ricardian" because they have the famous "Ricardian equivalence" property to another, "non-Ricardian" model would resolve many of these issues. A Ricardian model represents a household as a homogeneous family of infinitely lived individuals, and Bénassy demonstrates that a single modification the assumption that new agents are born over time (which makes the model non-Ricardian) can bridge the current gap between monetary intuitions and facts, on one hand, and rigorous modeling, on the other. After comparing R

About the Author

Jean-Pascal Bénassy is Director of Research at CNRS (National Center for Scientific Research), Paris, and a Research Fellow at CEPREMAP (Center for Economic Research and Applications). He is the author of The Macroeconomics of Imperfect Competition and Nonclearing Markets: A Dynamic General Equilibrium Approach (MIT Press, 2002).