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Microfoundations of Money: Why They Matter

Author

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  • Christopher J. Waller

Abstract

What is the value of having microfoundations for monetary exchange in a macro model? In this article, the author attempts to answer this question by listing what he considers the major accomplishments of the field. He argues that the evidence overwhelmingly shows that microfoundations matter for many questions of first-order importance in macroeconomics.

Suggested Citation

  • Christopher J. Waller, 2015. "Microfoundations of Money: Why They Matter," Review, Federal Reserve Bank of St. Louis, vol. 97(4), pages 289-301.
    • Handle: RePEc:fip:fedlrv:00048
    DOI: 10.20955/r.2015.289-301
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    References listed on IDEAS

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    Cited by:

    1. Kim, Minseong, 2016. "Futures market approach to understanding equity premium puzzle," MPRA Paper 70310, University Library of Munich, Germany.
    2. Lee, Seungduck, 2016. "Money, Asset Prices and the Liquidity Premium," MPRA Paper 75869, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • E47 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Forecasting and Simulation: Models and Applications
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money

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