Monetary Transaction Costs and the Term Premium /

We show that, in a monetary equilibrium, trade and asset prices depend on both the supply of the liquidity by the Central Bank and the liquidity of assets and commodities. As a result, monetary aggregates are informative for the conduct of monetary policy. We also show asset prices are higher in liq...

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Bibliographic Details
Main Author: Espinoza, Raphael
Other Authors: Tsomocos, Dimitrios P.
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2013.
Series:IMF Working Papers; Working Paper ; No. 2013/085
Online Access:Full text available on IMF