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on Payment Systems and Financial Technology |
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Issue of 2023‒07‒24
28 papers chosen by |
| By: | Gänßle, Sophia; Budzinski, Oliver |
| Abstract: | This chapter provides an overview of the economics of influencers and social media stardom. It provides the state-of-research regarding success factors, revenue and payment models, social media platforms and ecosystems, and welfare effects. It describes the role of social media content providers within the media industries and explores the differences and similarities of this new innovative element in media markets compared to its more traditional counterparts (traditional stars and traditional media industries). |
| Keywords: | social media, superstars, influencer, platforms, stardom, content producers, YouTube, Instagram, TikTok, gatekeepers |
| JEL: | L82 Z10 L13 L15 L86 D43 D83 F23 M21 D91 L26 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tuiedp:178&r=pay |
| By: | Nyanzu, Frederick; Baylis, Kathy |
| Keywords: | International Development, Agricultural and Food Policy, Agricultural Finance |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335719&r=pay |
| By: | Luzie Thiel (University Kassel); Jochen Michaelis (University Kassel) |
| Abstract: | Trotz rund sechs Jahren intensiver Forschung hat bisher keine Zentralbank der Industrienationen digitales Zentralbankgeld (Central Bank Digital Currency, CBDC) eingeführt. In diesem Artikel befassen wir uns mit den Gründen. Wir geben einen kurzen Überblick über den aktuellen Stand der Forschungsprojekte, welche Features sich als besonders kritisch herausstellen und über die ökonomische Wirkungsweise. Dabei konzentrieren wir uns auf die Substitutionsbeziehung von CBDC und bisher bestehenden liquiden Assets, den potentiellen Risiken und Chancen für die Finanzmarktstabilität und den potentiellen makroökomischen Implikationen. Es zeigt sich, dass sich weder die Empirie noch die Theorie einig ist über die voraussichtlichen Auswirkungen. Trotz aller Unsicherheiten resümieren wir: In 10 Jahren werden CBDCs weltweit etabliert sein. |
| Keywords: | CBDC, Central Banks, Financial Stability, Monetary System, Cryptocurrencies |
| JEL: | E42 E44 E58 G21 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:202315&r=pay |
| By: | Rasoul Amirzadeh; Asef Nazari; Dhananjay Thiruvady; Mong Shan Ee |
| Abstract: | Cryptocurrencies have gained popularity across various sectors, especially in finance and investment. The popularity is partly due to their unique specifications originating from blockchain-related characteristics such as privacy, decentralisation, and untraceability. Despite their growing popularity, cryptocurrencies remain a high-risk investment due to their price volatility and uncertainty. The inherent volatility in cryptocurrency prices, coupled with internal cryptocurrency-related factors and external influential global economic factors makes predicting their prices and price movement directions challenging. Nevertheless, the knowledge obtained from predicting the direction of cryptocurrency prices can provide valuable guidance for investors in making informed investment decisions. To address this issue, this paper proposes a dynamic Bayesian network (DBN) approach, which can model complex systems in multivariate settings, to predict the price movement direction of five popular altcoins (cryptocurrencies other than Bitcoin) in the next trading day. The efficacy of the proposed model in predicting cryptocurrency price directions is evaluated from two perspectives. Firstly, our proposed approach is compared to two baseline models, namely an auto-regressive integrated moving average and support vector regression. Secondly, from a feature engineering point of view, the impact of twenty-three different features, grouped into four categories, on the DBN's prediction performance is investigated. The experimental results demonstrate that the DBN significantly outperforms the baseline models. In addition, among the groups of features, technical indicators are found to be the most effective predictors of cryptocurrency price directions. |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2306.08157&r=pay |
| By: | Cristobal Cheyre; Benjamin T. Leyden; Sagar Baviskar; Alessandro Acquisti |
| Abstract: | We study the impact of the implementation of Apple's App Tracking Transparency (ATT) framework on the Apple App Store ecosystem. We use comprehensive data on every app available in both the Apple App Store and Google Play Store ecosystems in the eighteen-month period around the implementation of ATT, and a difference-in-differences analysis to investigate whether the introduction of the privacy transparency framework affected the incentives for developers in the Apple ecosystem to create new apps, update their existing apps, or withdraw from the market. We also leverage data on the presence of Software Development Kits (SDK) in a select number of apps in each ecosystem to study how developers adapted specific functionalities in their products, such as the use of advertising platforms or payment systems. We find that the number of available apps in the Apple App Store ecosystem quickly recovers after an initial drop following the introduction of ATT. When analyzing the use of SDKs, we find a reduction in the use of Monetization and Ad Mediation SDKs, and an increase in the use of Authentication and Payments SDKs. Our results suggest developers did not withdraw from the market after ATT and instead adapted to operate under the conditions of a more protective privacy framework. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10456&r=pay |
| By: | Diego Scalise (Bank of Italy) |
| Abstract: | This paper analyses the segment of the financial industry that comprises the set of digital applications designed to support the process of decarbonization and transition to environmental sustainability, which is known as Climate Fintech. Italy's special focus is on green equity crowdfunding and digital green lending solutions; however, automated applications for measuring environmental profiles are used to a lesser extent than in the rest of the sample. |
| Keywords: | Climate Fintech, green transition |
| JEL: | Q4 O16 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_780_23&r=pay |
| By: | Arpita Mukherjee (Indian Council for Research on International Economic Relations (ICRIER)); Eshana Mukherjee (Indian Council for Research on International Economic Relations (ICRIER)); Souvik Dutta (Indraprastha Institute of Information Technology, Delhi); Srishti Pal (Indian Council for Research on International Economic Relations (ICRIER)) |
| Abstract: | The study aims to examine the status of DFI of women in India, with a particular focus on the MSME sector by evaluating their access to financial institutions, usage and adoption of digital financial services, and digital and financial literacy among women; identify the key issues that impede enhancing DFI; and recognise areas within the MSME sector where policies and schemes can be introduced to help India forward the agenda for women’s DFI in the G20. |
| Keywords: | MSME, DFI, PMJDY, PMMY, G20, icrier |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:bdc:report:22-r-08&r=pay |
| By: | Donato Masciandaro; Oana Peia; Davide Romelli |
| Abstract: | This paper discusses the evolution of central bank communication, focusing on recent efforts by central banks to engage with a wider audience via social media. We document the social media presence of major central banks and discuss how analyzing Twitter content by and about monetary policy makers can inform about the effectiveness of communication in influencing beliefs. We focus on recent techniques employed in analyzing social media content in order to understand how central bank communication affects expectations and, subsequently, behavior in financial markets. |
| Keywords: | central bank communication, monetary policy, expectations, transparency, text analysis, social media, Twitter. |
| JEL: | E44 E52 E58 G14 G15 G41 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:baf:cbafwp:cbafwp22187&r=pay |
| By: | Timko, Christina; Adena, Maja |
| Abstract: | Smartphone app designers often use behavioral design to influence users, increase sales, and boost advertising revenue. Behavioral design relies on elements ranging from app appearance to black-box algorithms and personalization. It commonly exploits behavioral biases, such as the lack of self-control. Consumers are seldom aware of such design and usually have no control over it. Aiming to protect consumers, the recently enacted European Digital Services Act requires app design to be more transparent and adjustable. In a framed field experiment, we document that behavioral design increases app usage time, especially in the case of vulnerable users. An app version that adds transparency and offers protection features helps to overcome temptation. The higher willingness to pay for the transparent version shows that the positive effects of app transparency and increased consumer protection might not only materialize on the demand side but may also challenge current practices on the supply side. |
| Keywords: | smartphone app, filtering algorithm, transparency, consumer protection, field experiment |
| JEL: | C93 O33 D83 L86 M38 D18 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wzbeoc:spii2023302&r=pay |
| By: | Bayudan-Dacuycuy, Connie (Asian Development Bank Institute); Dacuucuy, Lawrence (Asian Development Bank Institute) |
| Abstract: | Using the Philippines’ first-ever nationally representative survey designed for characterizing digital commercial and noncommercial engagements, including information and communication technology (ICT) use, the digital economy, and technology-enabled incidents, we investigate the presence of gendered disparities in online marketplaces. Doing this is consistent with the spirit of a gender and development approach that aims for equal and equitable outcomes between men and women. We verify whether the observed participation of women in online marketplaces results in higher online sales. To establish the determinants of participation and incomes in online marketplaces, we use a Heckman estimator in cognizance of the nonrandom choices people make when they enter online marketspaces. The negative selection indicates that those likely to sell have unobserved attributes negatively correlated with online income. Based on our model’s income predictions, men outperform women in online sales. Men still hold the advantage, replicating a trend observed in traditional marketplaces. Results also highlight the importance of skills, digital awareness and habits, selling platforms, and ICT infrastructures. We also identify potential initiatives for online marketplaces. |
| Keywords: | online selling; participation; earnings; Philippines |
| JEL: | D19 D39 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:1341&r=pay |
| By: | Abu Sayed Toyon, Mohammad |
| Abstract: | As the world continues to navigate the new normal brought about by the COVID-19 pandemic, one issue that has come to the forefront is digital inequality. In Bangladesh, where a significant portion of the population resides in rural areas, the adoption of internet banking has been hindered by various factors. However, understanding these factors is crucial, especially now that digital transactions have become more important. This study aims to understand the factors influencing the adoption of internet banking services among rural customers in Bangladesh. To acquire data, a questionnaire was administered to 443 rural bank customers in the district of Barisal. The Exploratory Factor Analysis (EFA) revealed three primary factors: trust compatibility, service benefit, and access to consumer education. In addition, the research sought to determine if the identified factors, particularly access to consumer education, varied according to the occupation and income level of rural consumers. Using exhaustive Chi-squared Automatic Interaction Detection (CHAID) analysis, the findings revealed that access to consumer education differs significantly by occupation level, with business and service holders being more likely than farmers to have access to consumer education. This research contributes to the literature by providing insights into the adoption of internet banking by rural customers and informing policymakers about the special needs of this demographic. |
| Date: | 2023–04–29 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:h76k8&r=pay |
| By: | Chang, Hung-Hao; Meyerhoefer, Chad D. |
| Keywords: | Marketing, Agribusiness, Community/Rural/Urban Development |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335559&r=pay |
| By: | Maxime Malafosse (LEST - Laboratoire d'Economie et de Sociologie du Travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique, CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon) |
| Abstract: | La blockchain et les communs sont deux concepts qui suscitent de plus en plus d'intérêt. Par des approches différentes, on prête à ces deux notions beaucoup d'espoir pour transformer notre société et répondre aux enjeux actuels de transition sociale et écologique. Pourtant peu de recherches les mettent en lien. D'autant plus que les travaux qui rapprochent la blockchain et les communs restent essentiellement théoriques. Nos recherches visent à mieux cerner comment la blockchain peut s'inscrire en support aux communs en situation réelle. Nous avons exploré plusieurs terrains qui incarnaient, de différentes manières, le rôle d'une technologie comme un outil au service d'une finalité collective. Nous avons commencé par observer la place centrale de la blockchain dans un dispositif sociotechnique de communs qui vise à produire et à autogérer la création monétaire (essai 1). Pour investir ce premier terrain de recherche, nous avons réalisé une étude de cas. Dans l'essai suivant, nous avons cherché à éclairer le rôle de la blockchain comme outil intégré dans un dispositif plus large d'expérimentation de communs de la donnée à l'échelle d'une ville (essai 2). Cette deuxième étude de cas a été mûrie par la réalisation d'une mission d'expertise de deux années dans un tiers lieu et s'est finalement focalisé sur le projet Européen DECODE. Enfin, notre dernier essai s'appuie sur les résultats du premier essai et permet d'approfondir comment la blockchain pourrait permettre de soutenir économiquement les communs puisqu'elle bouleverse les perspectives de la monnaie par la démocratisation de ses formes alternatives, la facilitation de sa création et la complexification de son design (essai 3). |
| Keywords: | gouvernance, blockchain, systèmes de registres distribués monnaie, monnaie libre, Ğ1, Duniter, monnaie complémentaire, dividende universel, création monétaire, DECODE, Barcelone, communs de la donnée, communs, Ostrom, production par les pairs sur la base des communs, Commons-Based Peer Production (CBPP) |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-04111758&r=pay |
| By: | Seonmi Kim; Youngbin Lee; Yejin Kim; Joohwan Hong; Yongjae Lee |
| Abstract: | Recommender systems have become essential tools for enhancing user experiences across various domains. While extensive research has been conducted on recommender systems for movies, music, and e-commerce, the rapidly growing and economically significant Non-Fungible Token (NFT) market remains underexplored. The unique characteristics and increasing prominence of the NFT market highlight the importance of developing tailored recommender systems to cater to its specific needs and unlock its full potential. In this paper, we examine the distinctive characteristics of NFTs and propose the first recommender system specifically designed to address NFT market challenges. In specific, we develop a Multi-Attention Recommender System for NFTs (NFT-MARS) with three key characteristics: (1) graph attention to handle sparse user-item interactions, (2) multi-modal attention to incorporate feature preference of users, and (3) multi-task learning to consider the dual nature of NFTs as both artwork and financial assets. We demonstrate the effectiveness of NFT-MARS compared to various baseline models using the actual transaction data of NFTs collected directly from blockchain for four of the most popular NFT collections. The source code and data are available at https://anonymous.4open.science/r/RecSys 2023-93ED. |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2306.10053&r=pay |
| By: | Alain P. Chaboud; Ricardo Correa; Patrick Douglass; Linda S. Goldberg; Juan M. Londono; Fabiola Ravazzolo |
| Abstract: | The U.S. dollar plays a central role in the global economy. In addition to being the most widely used currency in foreign exchange transactions, it represents the largest share in official reserves, international debt securities and loans, cross-border payments, and trade invoicing. |
| Date: | 2023–06–23 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfn:2023-06-23-4&r=pay |
| By: | Zhi Su; Danni Wu; Zhenkun Zhou; Junran Wu; Libo Yin |
| Abstract: | This paper investigates the significance of consumer opinions in relation to value in China's A-share market. By analyzing a large dataset comprising over 18 million product reviews by customers on JD.com, we demonstrate that sentiments expressed in consumer reviews can influence stock returns, indicating that consumer opinions contain valuable information that can impact the stock market. Our findings show that Customer Negative Sentiment Tendency (CNST) and One-Star Tendency (OST) have a negative effect on expected stock returns, even after controlling for firm characteristics such as market risk, illiquidity, idiosyncratic volatility, and asset growth. Further analysis reveals that the predictive power of CNST is stronger in firms with high sentiment conditions, growth companies, and firms with lower accounting transparency. We also find that CNST negatively predicts revenue surprises, earnings surprises, and cash flow shocks. These results suggest that online satisfaction derived from big data analysis of customer reviews contains novel information about firms' fundamentals. |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2306.12119&r=pay |
| By: | Kirchner, Ella; Musshoff, Oliver |
| Keywords: | Agricultural Finance, International Development, Research Methods/Statistical Methods |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335664&r=pay |
| By: | Matthias Hunold (Universität Siegen [Siegen]); Ulrich Laitenberger (Télécom Paris, CRED - Centre de Recherche en Economie et Droit - Université Paris-Panthéon-Assas); Guillaume Thébaudin (Télécom Paris) |
| Abstract: | We study seller and product recommendations of the hybrid e-commerce platform Amazon. Using web-scraped data, we find that Amazon makes the visibility of offers of third-party suppliers in the "buybox" dependent on prices on competing marketplaces like Walmart and eBay. Amazon's own offers are visible regardless of their competitiveness. We find that the absence of seller recommendations makes recommendations to related products more effective and Amazon tends to steer consumers in these situations more often to products it sells itself. We discuss that this behavior is difficult to reconcile with the hypothesis of an independent marketplace operator. |
| Keywords: | Amazon marketplace buybox self-preferencing algorithm bias recommendation algorithms D40 L42 L81, Amazon marketplace, buybox, self-preferencing, algorithm bias, recommendation algorithms D40, L42, L81 |
| Date: | 2022–06–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-04104183&r=pay |
| By: | Christopher J. Waller |
| Date: | 2023–06–22 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgsq:96370&r=pay |
| By: | Joshua E. Blumenstock; Michael Callen; Anastasiia Faikina; Stefano Fiorin; Tarek Ghani; Michael J. Callen |
| Abstract: | Building state capacity is uniquely challenging in fragile states. We report results from a randomized evaluation of a major Afghan government initiative to increase capacity by modernizing its payroll. The reform, which required teachers to biometrically register and receive salary payments via mobile money, did little to reduce payments to non-existent “ghost” workers, but significantly reduced delays. The reform also improved educational outcomes and increased formal financial inclusion. The impacts were not immediate – highlighting the importance of long time-horizons – and were largest in urban areas. The results have implications for state-building and are potentially actionable for policymakers. |
| Keywords: | mobile money, state-building, corruption |
| JEL: | D02 D73 C93 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10510&r=pay |
| By: | Yang, Zhengliang; Caputo, Vincenzina |
| Keywords: | Research Methods/Statistical Methods, Marketing, Agribusiness |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335600&r=pay |
| By: | Donato Masciandaro |
| Abstract: | The never ending debate on the optimal money elasticity and predictability, coupled with the recent wishes of the major central banks to normalize monetary policy, as well as to revise their best practices, motivate this paper. Its aim is to offer a review of the evolution of the modern concept of flexible monetary policy rules, from the seminal contribute of Taylor (1993) to nowadays. Four subsequent steps are implemented: after an excursus on the traditional rules versus discretion debate, the origin of the flexible rules is described, and then its evolution; finally, the opportunity to consider as a promising research perspective the role of the central bankers’ heterogeneity – in terms of personal preferences, including the behavioural biases – is highlighted. The more it is likely that psychology matters, the more a new motivation arises for a central bank to adopt a flexible rule. |
| Keywords: | monetary policy, flexible rules, central bank governance, central banker conservatism, behavioural economics, Sweden, New Zealand |
| JEL: | E50 E52 E58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:baf:cbafwp:cbafwp23196&r=pay |
| By: | Greene, Kevin T.; Pereira, Mayana; Pisharody, Nilima; Dodhia, Rahul; Ferres, Juan Lavista; Shapiro, Jacob N |
| Abstract: | Does the URL referral structure of websites lead users into "rabbit holes" of misinformation? Past work suggests algorithmic recommender systems on sites like YouTube lead users to view more misinformation. However, websites without algorithmic recommender systems have financial and political motivations to influence the movement of users, potentially creating browsing rabbit holes. We address this gap using browser telemetry that captures referrals to a large sample of domains rated as reliable or unreliable information sources. Our results suggest the incentives for unreliable sites to retain and monetize users create misinformation rabbit holes. After landing on an unreliable site, users are very likely to be referred to another page on the site. Further, unreliable sites are better at retaining users than reliable sites. We find less support for political motivations. While reliable and unreliable sites are largely disconnected from one another, the probability of traveling from one unreliable site to another is relatively low. Our findings indicate the need for additional focus on site-level incentives to shape traffic moving through their sites. |
| Date: | 2023–06–13 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:x4dh7&r=pay |
| By: | OECD |
| Abstract: | This report focuses on regulatory sandboxes in artificial intelligence (AI), where authorities engage firms to test innovative products or services that challenge existing legal frameworks. Participating firms obtain a waiver from specific legal provisions or compliance processes to innovate. It highlights positive impacts like increased venture capital investment in fintech start-ups. It points out challenges, risks, and policy considerations for AI sandboxes, emphasizing interdisciplinary cooperation, building AI expertise, regulatory interoperability, and trade policy. It also addresses the importance of comprehensive criteria for eligibility and assessing trials, as well as the impact on innovation and competition. |
| Date: | 2023–07–13 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaab:356-en&r=pay |
| By: | Calum Robertson (NUDD - Usages du Numérique pour le Développement Durable - ULR - La Rochelle Université, ULR - La Rochelle Université); Sylvain Dejean (ULR - La Rochelle Université, NUDD - Usages du Numérique pour le Développement Durable - ULR - La Rochelle Université); Raphaël Suire (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - ONIRIS - École nationale vétérinaire, agroalimentaire et de l'alimentation Nantes-Atlantique - IMT Atlantique - IMT Atlantique - IMT - Institut Mines-Télécom [Paris] - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université - IUML - FR 3473 Institut universitaire Mer et Littoral - UM - Le Mans Université - UA - Université d'Angers - UBS - Université de Bretagne Sud - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - CNRS - Centre National de la Recherche Scientifique - Nantes Université - pôle Sciences et technologie - Nantes Univ - Nantes Université - Nantes Univ - ECN - École Centrale de Nantes - Nantes Univ - Nantes Université, Nantes Univ - Nantes Université) |
| Abstract: | Short-term rental platforms, led by Airbnb, have disrupted the tourism accommodation industry over the last decade. This disruption has encouraged policy-makers to intervene. However, little is known about how effective such interventions are. This paper empirically evaluates the impact Bordeaux's regulation has had on short-term rental (STR) activity through both a differences-in-differences and a triple-difference design. We find that regulation has had a reductive effect of over 322 rented days per month per district on average. This equates to 43% of mean reservation days and over 28 thousand less nights spent per month in STRs across the city. This effect is persistent in peripheral areas of the city, with an average effect of 35% of monthly reservation days. However, the city's attempts to limit activity stemming from targeted (commercial) listings yields mixed results as non-targeted (home-sharing) listings also seem to have modified their behavior. Additionally, analysis in the periphery points paves the way for discussion about the effectiveness of one-size-fits-all STR policy design. |
| Keywords: | Short-term rentals, Regulation, Tourism, Diff-in-diff methodology, Short-term rental Airbnb Regulation Tourism Housing Triple Difference Differences-indifferences, Short-term rental, Airbnb, Housing, Triple Difference, Differences-indifferences |
| Date: | 2023–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04123595&r=pay |
| By: | Wang, Zuyi; Tejeda, Hernan A.; Kim, Man-Keun |
| Keywords: | Agribusiness, Marketing, Research Methods/Statistical Methods |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335521&r=pay |
| By: | Marie-Pierre Hory (LEO - Laboratoire d'Économie d'Orleans - UO - Université d'Orléans - UT - Université de Tours); Grégory Levieuge (LEO - Laboratoire d'Économie d'Orleans - UO - Université d'Orléans - UT - Université de Tours); Daria Onori (LEO - Laboratoire d'Économie d'Orleans - UO - Université d'Orléans - UT - Université de Tours) |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03533089&r=pay |
| By: | João Ricardo Faria; Peter McAdam |
| Abstract: | We derive a general “Janus” money demand function that reflects backward- and forward-looking habit formation. The scope of our model allows us to explain the breakdown of money-demand functions and reduced policy relevance of monetary aggregates. Integrating our Janus money demand into a Barro-Gordon framework reveals new insights for time inconsistency in monetary policy and a new impossibility theorem. |
| Keywords: | money demand; monetary policy; impossibility theorem |
| JEL: | E41 E5 E61 E71 |
| Date: | 2023–05–11 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedkrw:96358&r=pay |