Short-Run Dynamics in a Search-Theoretic Model of Monetary Exchange - Chiu, Jonathan; Molico, Miguel (Ottawa, ON, CA: Bank of Canada, 2020)
'We study the short-run effects of monetary policy in a search-theoretic monetary model in which agents are subject to idiosyncratic liquidity shocks as well as aggregate monetary shocks. Namely, we analyze the role of the endogenous non-degenerate distribution of liquidity, liquidity constraints, and decentralized trade in the transmission and propagation of monetary policy shocks'--Abstract.
Keywords: Economic equilibrium; Economic growth; Economics; Economy; Impulse response; Inflation; Kernel density estimation; Long run and short run; Macroeconomics; Market (economics)