MARC Record from Scriblio

LEADER: 02428cam 22003497a 4500
001 2004616785
003 DLC
005 20050127092428.0
007 cr |||||||||||
008 050104s2000 mnu sb f000 0 eng
010 $a 2004616785
040 $aDLC$cDLC$dDLC
050 00 $aHB1
100 1 $aAlvarez, Fernando,$d1964-
245 10 $aMoney, interest rates, and exchange rates with endogenously segmented asset markets$h[electronic resource] /$cFernando Alvarez, Andrew Atkeson, and Patrick J. Kehoe.
260 $a[Minneapolis, Minn.] :$bFederal Reserve Bank of Minneapolis,$c[2000]
490 1 $aWorking paper / Federal Reserve Bank of Minneapolis, Research Dept. ;$v605
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from abstract page as viewed on 1/4/2005.
500 $a"August 2000."
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"This paper analyzes the effects of money injections on interest rates and exchange rates in a model in which agents must pay a Baumol-Tobin style fixed cost to exchange bonds and money. Asset markets are endogenously segmented because this fixed cost leads agents to trade bonds and money only infrequently. When the government injects money through an open market operation, only those agents that are currently trading absorb these injections. Through their impact on these agents' consumption, these money injections affect real interest rates and real exchange rates. We show that the model generates the observed negative relation between expected inflation and real interest rates. With moderate amounts of segmentation, the model also generates other observed features of the data: persistent liquidity effects in interest rates and volatile and persistent exchange rates. A standard model with no fixed costs can produce none of these features"--Federal Reserve Bank of Minneapolis web site.
650 0 $aMonetary policy$xMathematical models.
650 0 $aInterest rates$xMathematical models.
650 0 $aForeign exchange rates$xMathematical models.
700 1 $aAtkeson, Andrew.
700 1 $aKehoe, Patrick J.
710 2 $aFederal Reserve Bank of Minneapolis.$bResearch Dept.
830 0 $aWorking paper (Federal Reserve Bank of Minneapolis : Online) ;$v605.
856 40 $uhttp://minneapolisfed.org/research/wp/wp605.html