Optimal Monetary Policy in an Overlapping Generations Model
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
In this thesis we study a monetary economy with overlapping generations. The thesis aims at complementing the work of Freeman (1989) by adding the assumption that transaction costs can be reduced by increasing real or nominal money holdings. The objective is to determine the optimal monetary policy which maximizes agents' expected lifetime utility. We find that the optimal monetary policy is to hold the fiat currency stock constant over time.
Place, publisher, year, edition, pages
Overlapping Generations, Optimal Monetary Policy, Fiat Money, Transaction Costs
IdentifiersURN: urn:nbn:se:uu:diva-226603OAI: oai:DiVA.org:uu-226603DiVA: diva2:726555
Waldenström, Daniel, Gästprofessor