Money and Contracts
解释高名义利率伴随低实际GNP的现象，构建模型表明银行法律限制导致货币与债券并存，公开市场操作提高利率和信贷成本，促使企业签订更频繁解雇的劳动合同。
This paper presents a novel interpretation of the fact that high nominal interest rates accompany low levels of real GNP. It constructs a model in which money and bonds are both held as a result of legal restrictions on the banking system. Open market operations may increase the equilibrium rate of interest and raise the cost of credit. This increase in the cost of credit causes firms to write labour contracts in which layoffs occur more frequently. The nature of optimal labour contracts is derived explicitly from assumptions about the information that is available to firms and to workers.