Market intelligence gathering, asymmetric information, and the instability of money demand.
The observed money demand in the U.S. had a stable negative relation with the interest rate up until the 1990s. After this period, this relation fell apart and has never been restored. We show that the central bank's ability to gather information, referred to as market intelligence (MI), matters to...
| Publicado en: | Economic Inquiry Vol. 62; no. 3; pp. 1216 - 1246 |
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| Autores principales: | , |
| Formato: | Artículo |
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Wiley-Blackwell
Jul2024
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| Acceso en línea: | Ver este registro en EBSCOhost |
| fields | @attributes: recordID: 1 pdfLink: plink: https://search.ebscohost.com/login.aspx?direct=true&db=ssf&AN=178020554&site=ehost-live header: @attributes: shortDbName: ssf uiTerm: 178020554 longDbName: Social Sciences Full Text (H.W. Wilson) uiTag: AN controlInfo: bkinfo: jinfo: jid: 00952583 EIQ jtl: Economic Inquiry issn: 00952583 maglogo: Y pubinfo: dt: Jul2024 vid: 62 iid: 3 pid: 480 pub: Wiley-Blackwell artinfo: ui: 178020554 10.1111/ecin.13211 ppf: 1216 ppct: 30 formats: fmt: – @attributes: type: T – @attributes: type: C – @attributes: type: P size: 1.4MB tig: atl: Market intelligence gathering, asymmetric information, and the instability of money demand. aug: au: Kim, Seon Tae Marchesiani, Alessandro affil: School of Management and Economics, Handong Global University, Pohang, Republic of Korea Department of Economics, Management School, University of Liverpool, Liverpool, UK su: Information asymmetry Demand for money Reconnaissance operations Marketing strategy sug: subj: Information asymmetry Demand for money Reconnaissance operations Marketing strategy keyword: asymmetric information money and search new monetary economics stabilization policy asymmetric information money and search new monetary economics stabilization policy ab: The observed money demand in the U.S. had a stable negative relation with the interest rate up until the 1990s. After this period, this relation fell apart and has never been restored. We show that the central bank's ability to gather information, referred to as market intelligence (MI), matters to generate an upward‐sloping money demand curve. We calibrate the model to the U.S. data for the period from 1990 to 2019 and show that MI helps to match the money demand. We also show that it is beneficial for the society, since it mitigates the inefficiency associated with asymmetric information. pubtype: Academic Journal doctype: Article src: R language: English refInfo: copyright: @attributes: flag: N holdings: @attributes: islocal: N |
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