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Liquidity Effects and Transactions Technologies Author info | Abstract | Publisher info | Download info | Related research | Statistics Dotsey, Michael
Ireland, Peter
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Recently there has been growing interest in using general equilibrium models to understand the effects of monetary policy on interest rates and real economic activity. This research effort has involved the search for models that generate liquidity effects. One branch of this research employs cash-in-advance constraints and various assumptions about financial structures that place infinite transaction costs on flow of funds across segmented markets. In this paper, the authors relax the assumption of infinite transactions costs and find that liquidity effects either disappear or are greatly dampened when transaction technologies are more appropriately specified. Copyright 1995 by Ohio State University Press.
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Article provided by Blackwell Publishing in its journal Journal of Money, Credit and Banking .
Volume (Year): 27 (1995)
Issue (Month): 4 (November)
Pages: 1441-57
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Handle: RePEc:mcb:jmoncb:v:27:y:1995:i:4:p:1441-57Contact details of provider: Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-2879
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