Working Paper 09 - 01 January 2009

نویسندگان

  • Guillaume Rocheteau
  • Murali Agastya
  • Aditya Goenka
  • Yiting Li
  • Ed Nosal
  • Peter Rupert
  • Neil Wallace
  • Pierre-Olivier Weill
  • Asher Wolinsky
  • Tao Zhu
چکیده

Working papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded offi cial Federal Reserve Bank of Cleveland publications. The views stated herein are those of the authors and are not necessarily those of the Federal Reserve Bank of Cleveland or of the Board of Governors of the Federal Reserve System. A Monetary Approach to Asset Liquidity by Guillaume Rocheteau This paper offers a monetary theory of asset liquidity―one that emphasizes the role of assets in payment arrangements―and it explores the implications of the theory for the relationship between assets' intrinsic characteristics and liquidity, and the effects of monetary policy on asset prices and welfare. The environment is a random-matching economy where at money coexists with a real asset, and no restrictions are imposed on payment arrangements. The liquidity of the real asset is endogenized by introducing an informational asymmetry in regard to its fundamental value. The model delivers the following insights. A monetary equilibrium exists irrespective of the per capita supply of the real asset, provided that infl ation is not too high. The illiquidity premium paid to the real asset tends to increase as the asset becomes riskier and more abundant. Monetary policy affects the real asset's return when its quantity is not too large and infl ation is in some intermediate range. The model predicts a negative relationship between infl ation and the real asset's expected return.

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تاریخ انتشار 2008