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来源类型 | Working Paper |
规范类型 | 报告 |
DOI | 10.3386/w10642 |
来源ID | Working Paper 10642 |
Deflationary Bubbles | |
Willem H. Buiter; Anne C. Sibert | |
发表日期 | 2004-07-26 |
出版年 | 2004 |
语种 | 英语 |
摘要 | We analyse deflationary bubbles in a model where money is the only financial asset. We show that such bubbles are consistent with the household's transversality condition if and only if the nominal money stock is falling. Our results are in sharp contrast to those in several prominent contributions to the literature, where deflationary bubbles are ruled out by appealing to a non-standard transversality condition, originally due to Brock. This condition, which we dub the GABOR condition, states that the consumer must be indifferent between reducing his money holdings by one unit and leaving them unchanged and enjoying the discounted present value of the marginal utility of that unit of money forever. We show that the GABOR condition is not part of the necessary and sufficient conditions for household optimality nor is it sufficient to rule out deflationary bubbles. Moreover, it rules out Friedman's optimal quantity of money equilibrium and, when the nominal money stock is falling, it rules out deflationary bubbles that are consistent with household optimality. We also consider economies with real and nominal government debt and small open economies where private agents can lend to and borrow from abroad. In these cases, deflationary bubbles may be possible, even when the nominal money stock is rising. Their existence is shown to depend on the rules governing the issuance of government debt. |
主题 | Macroeconomics |
URL | https://www.nber.org/papers/w10642 |
来源智库 | National Bureau of Economic Research (United States) |
引用统计 | |
资源类型 | 智库出版物 |
条目标识符 | http://119.78.100.153/handle/2XGU8XDN/568271 |
推荐引用方式 GB/T 7714 | Willem H. Buiter,Anne C. Sibert. Deflationary Bubbles. 2004. |
条目包含的文件 | ||||||
文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
w10642.pdf(239KB) | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 |
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