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Money portal. Business portal. v. t. e. Microfoundations are an effort to understand macroeconomic phenomena in terms of economic agents' behaviors and their interactions. [1] . Research in microfoundations explores the link between macroeconomic and microeconomic principles in order to explore the aggregate relationships in macroeconomic models.
The Keys to the Essentiality of Money. On the other side, a camp emerged that insisted on explicit microfoundations for money demand. This meant building models where the economy with money would support outcomes not possible in the economy without it (that is, models where money is essential).
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At the individual, or micro, level demand for money balances will be a function (i) of the differential between the perceived yield on money and on other assets; (ii) of the costs of transferring between money and other assets; (iii) of the price uncertainty of assets; and (iv) of the expected pattern of expenditures and receipts.
- C. A. E. Goodhart
- 1989
Jan 27, 2012 · Microfoundations and the Demand for Money. Get access. Keith Cuthbertson. The Economic Journal, Volume 107, Issue 443, 1 July 1997, Pages 1186–1201, https://doi.org/10.1111/j.1468-0297.1997.tb00018.x. Published: 27 January 2012. Cite. Permissions. Share. Extract.
Dec 7, 2015 · Microfoundations of Money: Why They Matter. by Christopher J. Waller. What is the value of having microfoundations for monetary exchange in a macro model? In this article, the author attempts to answer this question by listing what he considers the major accomplishments of the field.
Jan 27, 2012 · Microfoundations for a Stable Demand for Money Function | The Economic Journal | Oxford Academic. Journal Article. Microfoundations for a Stable Demand for Money Function. Paul Mizen. Author Notes. The Economic Journal, Volume 107, Issue 443, 1 July 1997, Pages 1202–1212, https://doi.org/10.1111/j.1468-0297.1997.tb00019.x. Published:
This study empirically investigates dynamic microfoundations for the conventional static money demand equation. An intertemporal substitution model with the addilog utility function yields. aa money demand relationship that closely approximates the double log specification. Results.
