countercyclical idiosyncratic labor and asset risk. We derive conditions under which the aggregate allocations and price system can be … policy in a new Keynesian economy with uninsured countercyclical individual risk. The optimal monetary policy that emerges … at zero. -- uninsured risk ; sticky prices ; optimal monetary policy …

countercyclical idiosyncratic labor and asset risk. We derive conditions under which the aggregate allocations and price system can be … policy in a new Keynesian economy with uninsured countercyclical individual risk. The optimal monetary policy that emerges …

The microeconomic foundation of the theory of money has long represented a puzzle to economic theory. Why is there … Money? derives the foundations of monetary theory from advanced price theory in a mathematically precise family of trading … transaction costs. The result is foundations of monetary theory consistent with and derived from modern price theory. …