| 来源类型 | Working Paper
|
| 规范类型 | 报告
|
| DOI | 10.3386/w18285
|
| 来源ID | Working Paper 18285
|
| The Price Theory of Money, Prospero's Liquidity Trap, and Sudden Stop: Back to Basics and Back |
| Guillermo A. Calvo
|
| 发表日期 | 2012-08-10
|
| 出版年 | 2012
|
| 语种 | 英语
|
| 摘要 | Fiat money contains the seeds of its own destruction. It has no intrinsic value and, yet, it can be exchanged for valuable consumption and production goods. As Hahn (1965) shows, this situation puts fiat money's market value or liquidity premium at the brink of collapse. In this paper I will argue that (1) sticky prices, especially when staggered, provide output backing to fiat money, helping to sustain fiat money's liquidity premium and, thus, lowering the risk of a liquidity meltdown. I call this view the Price Theory of Money; (2) fixed-income assets linked to fiat money, especially if they are perceived to have low counter-party risk (like US Treasury bills, AAA bonds or Asset-Backed Securities) can take advantage of point (1) to become quasi-moneys; (3) this gives incentives to the private sector to create those assets; (4) however, unless protected by a Lender of Last Resort, the new assets' liquidity premium can quickly and massively evaporate in what I call (with a wink to the Bard) a Prospero's Liquidity Trap; (5) the latter lowers the market value of loan collateral and clogs the credit channel, bringing about a credit event or Sudden Stop, with severe output and employment consequences. |
| 主题 | Macroeconomics
; Business Cycles
; Money and Interest Rates
; Monetary Policy
; International Economics
; International Finance
; International Macroeconomics
|
| URL | https://www.nber.org/papers/w18285
|
| 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/575961
|
推荐引用方式
GB/T 7714 |
Guillermo A. Calvo. The Price Theory of Money, Prospero's Liquidity Trap, and Sudden Stop: Back to Basics and Back. 2012.
|
|
文件名：
|
w18285.pdf
|
|
格式：
|
Adobe PDF
|
此文件暂不支持浏览
除非特别说明，本系统中所有内容都受版权保护，并保留所有权利。
