Optimality of the Friedman Rule in an Overlapping Generations Model with Spatial Separation
研究空间分离模型中弗里德曼规则是否最优，发现代际转移是关键因素，规则是实现有效配置的必要条件，且当代理人能实施互利安排时规则会被选择。
Recent models with spatial separation and limited communication suggest that the Friedman rule may not be optimal. This is important in light of the disparity between theory and practice concerning optimal monetary policy. We take a close look at these models and show that intergenerational transfers are key to the suboptimality of the Friedman rule. The Friedman rule is a necessary condition for achieving the efficient allocation in equilibrium. We also show that the Friedman rule is chosen whenever agents can implement mutually beneficial arrangements.