Gaps and Triangles
研究无资本经济中的最优周期性货币政策，发现遵循弗里德曼规则抵消现金先行约束是最优的，但消除价格设定缺口并非最优，因为粘性价格可改善扭曲的弹性价格配置。
In this paper, we derive principles of optimal cyclical monetary policy in an economy without capital, with a cash-in-advance restriction on household transactions, and monopolistic firms that set prices one period in advance. The only distortionary policy instruments are the nominal interest rate and the money supply. In this environment it is feasible to undo both the cash-in-advance and price setting restrictions, but not the distortion due to monopolistic competition. We show that it is optimal to follow the Friedman rule, and thus offset the cash-in-advance restriction. We also find that, in general, it is not optimal to undo the price setting restriction, so that a simple criterion of eliminating gaps is not optimal. Sticky prices provide the planner with tools to improve upon a distorted flexible price allocation. Copyright 2003, Wiley-Blackwell.