tag:blogger.com,1999:blog-2499715909956774229.post7746963448480981967..comments2024-03-22T22:37:02.639-07:00Comments on Stephen Williamson: New Monetarist Economics: Neo-Fisherism and Finite HorizonsStephen Williamsonhttp://www.blogger.com/profile/01434465858419028592noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2499715909956774229.post-56332299120490953372016-01-15T06:13:30.799-08:002016-01-15T06:13:30.799-08:00No, OLG is infinite horizon. The agents in the mod...No, OLG is infinite horizon. The agents in the model are finite lived, but the economy runs forever.Stephen Williamsonhttps://www.blogger.com/profile/01434465858419028592noreply@blogger.comtag:blogger.com,1999:blog-2499715909956774229.post-20450825115495159282016-01-15T06:11:39.145-08:002016-01-15T06:11:39.145-08:00There is something - we could call it money - and ...There is something - we could call it money - and the supply of that stuff is zero in a Woodford cashless model. I may be missing something, but when I go to the store to buy a toothbrush, and there are none there, I can't buy a toothbrush.Stephen Williamsonhttps://www.blogger.com/profile/01434465858419028592noreply@blogger.comtag:blogger.com,1999:blog-2499715909956774229.post-28115237805607568292016-01-15T05:45:37.304-08:002016-01-15T05:45:37.304-08:00Dear SW, one possible fix to work in a well specif...Dear SW, one possible fix to work in a well specified monetary environment and solve backward induction would be to use an OLG structure and set up a stationary equilibrium . This could turn helpful to teach monetary environment, esp CIA, to bachelor students for instance (!)<br />Best,ACnoreply@blogger.comtag:blogger.com,1999:blog-2499715909956774229.post-76592086384004752712016-01-14T20:33:32.957-08:002016-01-14T20:33:32.957-08:00"But here, it's hard to see what it is th..."But here, it's hard to see what it is that the fiscal authority does to fix the inflation rate in the final period, as the model is cashless."<br /><br />Correct me if I'm wrong, but Woodford's cashless system still has a medium of account, some sort of asset or security that is used to represent the economy's pricing unit. This isn't a very liquid asset, not enough to be called a medium of exchange or cash, but it's still something. Why can't the fiscal authority just buy that security back and retire it?JP Koninghttps://www.blogger.com/profile/02559687323828006535noreply@blogger.com