This paper explores how the responsibility of caring for children affects employment stability by studying the relationship between the characteristics and stability of substitute caregivers and the risk of leaving of job. The data come from the 1990 National Child Care Survey (NCCS), a nationally representative survey of households with children under age 13 conducted in late 1989 and early 19...

As recent events attest, modern economies may have trouble enforcing Say’s Law. An economy with decentralized markets and trades between goods and a liquid asset, money, has two equilibria. In full-employment, output is determined by supply. But a higher demand for liquidity is self-fulfilling and precipitates the economy to an equilibrium where output is determined by demand: the increase of t...

The mechanism by which aggregate supply creates the income that generates its matching demand (called Say’s Law), may not work in a general equilibrium with decentralized markets and savings in bonds or money. Full employment is an equilibrium, but convergence to that state is slow. A self-fulfilling precautionary motive to accumulate bonds (with a zero aggregate supply) can set the economy on ...

This paper contributes to the analysis of the money supply process in Germany during the period of monetary targeting by the Bundesbank from 1975-1998. While the standard money multiplier approach assumes that the money stock is determined by the money multiplier and the monetary base it is argued here that both the money stock and the monetary base are determined endogenously by the optimizing...

In many contracting settings, actions costly to one party but with no direct benefits to the other (money-burning) may be part of the explicit or implicit contract. A leading example is bureaucratic procedures in an employer-employee relationship. We study a model of delegation with an informed agent, where the principal may impose money-burning on the agent as a function of the agent’s choice ...

When you store your belongings in a private locker, does the owner of locker pay you? On contrary, owner, for he is providing with service called safe-keeping. In effect, holds safe until take them back. So, why it that accept money from bank to hold The obvious answer not holding money; lending out and rewarding portion what collects interest. If are happy this arrangement, have likely sought ...

It is not quite true, as one (hostile) commentary has asserted, that Monetarism was developed by “Milton Friedman at the Federal Reserve Board (sic) of St. Louis,” but it is nevertheless the case that the intellectual environment created at this Bank by Homer Jones ensured that the doctrine took root and flourished here when it was very much a minority taste elsewhere.1 And indeed, at least two...

The ability to engineer real wage cuts in centralized labor markets has depended on exchange rate interventions. This paper provides some structure to the question of how a monetary union would a¤ect the connection between bargaining structure and macroeconomic performance. The results indicate that the precautionary saving motive in anticipation of transitory terms of trade shock is signi...ca...