@article{1385704,
      recid = {1385704},
      author = {Bénassy, Jean-Pascal.},
      title = {Money, interest, and policy : dynamic general equilibrium  in a non-Ricardian world /},
      publisher = {MIT Press,},
      address = {Cambridge, Mass. :},
      pages = {1 online resource (xvii, 196 pages) :},
      year = {2007},
      abstract = {An important recent advance in macroeconomics is the  development of dynamic stochastic general equilibrium  (DSGE) macromodels. The use of DSGE models to study  monetary policy, however, has led to paradoxical and  puzzling results on a number of central monetary issues  including price determinacy and liquidity effects. In  Money, Interest, and Policy, Jean-Pascal Benassy argues  that moving from the standard DSGE models - which he calls  "Ricardian" because they have the famous "Ricardian  equivalence" property-to another, "non-Ricardian" model  would resolve many of these issues. A Ricardian model  represents a household as a homogeneous family of  infinitely lived individuals, and Benassy demonstrates that  a single modification-the assumption that new agents are  born over time (which makes the model non-Ricardian)-can  bridge the current gap between monetary intuitions and  facts, on one hand, and rigorous modeling, on the  other.After comparing Ricardian and non-Ricardian models,  Benassy introduces a model that synthesizes the two  approaches, incorporating both infinite lives and the birth  of new agents. Using this model, he considers a number of  issues in monetary policy, including liquidity effects,  interest rate rules and price determinacy, global  determinacy, the Taylor principle, and the fiscal theory of  the price level. Finally, using a simple overlapping  generations model, he analyzes optimal monetary and fiscal  policies, with a special emphasis on optimal interest rate  rules.},
      url = {http://library.usi.edu/record/1385704},
}