Two Monetary Models with Alternating Markets

Monetary Equilibrium with Missing Markets

Asset Markets and Monetary Policy

Monetary policy has pursued the concept of inflation targeting. This has been implemented in many countries. Here interest rates are supposed to respond to an inflation gap and output gap. Despite long term continuing growth of the world financial assets, recently, monetary policy, in particular in the U.S. after the subprime credit crisis, was challenged by severe disruptions and a meltdown of...

Anonymous Markets and Monetary Trading∗

We study infinite-horizon monetary economies characterized by trading frictions that originate from random pairwise meetings, and commitment and enforcement limitations. We prove that introducing occasional trade in “centralized markets” opens the door to an informal enforcement scheme that sustains a non-monetary efficient allocation. All is required is that trading partners’ be patient and th...

Vertex Models with Alternating Spins

The diagonalisation of the transfer matrices of solvable vertex models with alternating spins is given. The crystal structure of (semi-)infinite tensor products of finite dimensional Uq(ŝl2) crystals with alternating dimensions is determined. Upon this basis the vertex models are formulated and then solved by means of Uq(ŝl2) intertwiners.

Optimal Taxation in a Monetary Search Model with Informal Markets

This paper considers a search theoretic model of money in the tradition of Lagos and Wright (2005) where sellers can choose to produce in the formal or informal market. There is continuum of types of producers that differ in their managerial ability, as in Lucas span of control model. Producers in the formal market can make deposits and receive intererst payments, which makes credit possible fo...