Sticky Prices versus Monetary Frictions: An Estimation of Policy Trade-offs
构建了一个包含集中市场和分散市场的两部门货币模型，首次用战后美国数据估计该模型，发现货币摩擦造成的福利损失与新凯恩斯摩擦相当。
We develop a two-sector monetary model with a centralized and decentralized market. Activities in the centralized market resemble those in a standard New Keynesian economy with price rigidities. In the decentralized market agents engage in bilateral exchanges for which money is essential. This paper is the first to formally estimate such a model, evaluate its fit based on postwar US data, and assess its money demand properties. Steady-state welfare calculations reveal that the distortions created by the monetary friction may be of similar magnitude as the distortions created by the New Keynesian friction.