تعیین سیاست های پولی بلند مدت منحنی فیلیپس : تولید مدل OLG با محدودیت های پیشبرد پول نقد

This paper studies a cash-in-advance model with overlapping generations of producers and workers. Producers own decreasing returns to scale technologies, and both producers and workers face liquidity constraints in the labor and good markets. We characterize monetary competitive equilibrium and show that the way monetary policy is conducted determines the long-run Phillips curve.

Cash-in-advance constraints have extensively been studied in infinite-horizon models with production. Some examples are Cooley and Hansen (1989), Fuerst (1992), Carlstrom and Fuerst (1995), Christiano et al., 1997 and Christiano et al., 1998, and Basci and Saglam, 1999, Basci and Saglam, 2003a and Basci and Saglam, 2003b. These studies all establish an operational Phillips curve between inflation and employment that is downward-sloping, or equivalently the presence of a working capital premium as the gap between real wage and productivity. This gap can be completely eliminated, as proposed by numerous studies, by a deflationary policy (Friedman rule) that equates the real rate of return on money to the time preference of the representative agent. The purpose of this paper is to demonstrate in a cash-in-advance model with production that monetary policy may determine the sign of the slope of the long-run Phillips curve. We obtain this unconventional result in an economy with overlapping generations of producers and workers who live for two periods and who face liquidity constraints in the labor and good markets. After characterizing the monetary competitive equilibrium, we show that an increase in the growth rate of money supply, through a rise in old producers' share in money transfers, decreases the equilibrium real wage rate and employment. Thus, we obtain between anticipated inflation and employment the conventional downward-sloping Phillips curve commonly derived in the cash-in-advance literature. At the opposite extreme, an increase in the growth rate of money supply, through a rise in young producers' share in money transfers, leads to an increase in the equilibrium real wage rate and employment. We thus recover the upward-sloping Phillips curve, almost fifty years after its first appearance. The paper is organised as follows. Section 2 is devoted to the presentation of the model. In Section 3, we define and characterize the monetary competitive equilibrium. We explore the relationship between monetary policy and Phillips curves in Section 4. Finally, Section 5 concludes.

In this paper, we studied a simple production economy under an OLG framework with liquidity constraints imposed both in the factor market and in the good market. We showed that monetary competitive equilibrium exists if and only if the rate of money growth is sufficiently high. The well-known wage–productivity gap as a working capital premium was also established. We found that money is neutral; but not superneutral. However, our result greatly deviates from the previous ones in the cash-in-advance literature in that our Phillips curve relations depend upon the way monetary policy is conducted. It is very interesting that the set of instruments in controlling employment/output or inflation in our model is not limited to choosing money growth rate that yields the most preferred outcome on a given Phillips curve.1 Here, the policy maker can also choose between alternative Phillips curves through controlling the allocation of money transfers. A monetary authority that is tied to a pre-determined path of rising inflation can select the transfer rule yielding an upward-sloping Phillips curve so as to increase employment in the course of its actions. Conversely, a monetary authority that is committed to a fixed transfer rule and hence to a Phillips curve with the implied slope can optimally inflate or deflate money to fully exploit the observed tradeoff on the curve.