Title

Asset Markets, General Equilibrium and the Neutrality of Money

Document Type

Discussion Paper

Publication Date

9-1-1981

CFDP Number

605

CFDP Pages

22

Abstract

When government liabilities (including money) are held in private portfolios only as stores of value, and do not provide additional benefits (as liquidity services), the real variables in an economy with uncertainty are not affected by the government’s trading in assets. There are also policies which alter the money supply through taxes or subsidies, and affect the price of money without changing real variables.

This document is currently not available here.

Share

COinS