Money in the OLG model Flashcards
what is the assumptions for the monetary framework?
for the OLG money model, what is the initial old consumers budget constraint?
for the OLG money model, for a consumer born at t>=1, what is the budget constraint for young and old respectively?
what is the budget constraint for money?
what is the consumers lifetime budget constraint in units of money?
what are the solutions to the utility maximisation problem for the initial old?
what are the solutions to the utility maximisation problem for a consumer born at time t>=1?
what is the money market clearing condition?
what is the goods market clearing condition?
at any t>=2. what does the goods market imply?
if endowments for old are 0, what does this mean for prices?
the prices are pinned down at 2M/w(y) where M is the money supply and w(y) is endowments for young
if the endowments for old are greater than 0, what is the price equation?
explain the analysis of solving for p_t+1 in terms of p_t?
what does the money OLG model predict if the endowments given to the young is smaller than the endowments given to the old?
what does the money OLG model predict if the endowments given to the young is equal to the endowments given to the old?
what does the money OLG model predict if the endowments given to the young is greater than the endowments given to the old?
