Risk Premia and the Real Effects of Money
提出一个弹性价格理论，解释在个体风险分担不完全的经济中，货币如何通过风险溢价影响投资：风险溢价上升时，货币作为安全储值工具阻止利率下降，从而抑制投资；货币是中性的，但实际效应在无现金极限下仍存在。
This paper proposes a flexible-price theory of the role of money in an economy with incomplete idiosyncratic risk sharing. When the risk premium goes up, money provides a safe store of value that prevents interest rates from falling, reducing investment. Investment is too high during booms when risk is low, and too low during slumps when risk is high. Monetary policy cannot correct this: money is superneutral and Ricardian equivalence holds. The optimal allocation requires the Friedman rule and a tax/subsidy on capital. The real effects of money survive even in the cashless limit.