Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/100893
Authors: 
Marcet, Albert
Nicolini, Juan Pablo
Year of Publication: 
2003
Series/Report no.: 
Working Paper, Federal Reserve Bank of Atlanta 2003-15
Abstract: 
In this paper the authors explore the ability of simple monetary models with bounded rationality to account for the joint distribution of money and prices. They impose restrictions on the size of the mistakes agents can make in equilibrium and argue that countries with high inflation are likely to satisfy these restrictions. Their computations show that the model with bounded rationality does neither improve nor deteriorate the ability of the model to match the data.
Subjects: 
Monetary policy
Equilibrium (Economics)
Macroeconomics
Document Type: 
Working Paper

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