Economics, Econometrics and Finance
4 years ago

Optimal monetary policy redistributes wealth for long-term economic stability.

RePEc: Research Papers in Economics
Optimal monetary policy with heterogeneous agents (Updated September 2019)
Galo Nuño, Carlos Thomas

Paper Summary

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The article discusses how to make the best decisions about money in a world where people have different levels of risk and debt. By looking at how inflation affects different groups, the researchers found that it's best to have some inflation at the beginning, but eventually, it's better to have no inflation at all. This way, everyone can benefit from the money system in a fair way.