@article{a9b4b6b5a7974ae0870255caf1b1ca59,
title = "Liquidity, business cycles, and monetary policy",
abstract = "This paper presents a model of a monetary economy where there are differences in liquidity across assets. Money circulates because it is more liquid than other assets, not because it has any special function. The model is used to investigate how aggregate activity and asset prices fluctuate with shocks to productivity and liquidity and to examine what role government policy might have through open-market operations that change the mix of assets held by the private sector.",
author = "Nobuhiro Kiyotaki and John Moore",
note = "Funding Information: Shimer, Harald Uhlig, and two anonymous referees for thoughtful comments. We express our special gratitude to Wei Cui for his excellent research assistance. Kiyotaki acknowledges financial support from the US National Science Foundation, and Moore acknowledges financial support from the Leverhulme Trust, the European Research Council, and the UK Economic and Social Research Council. Funding Information: The first version of this paper was presented as a plenary address to the 2001 Society for Economic Dynamics Meeting in Stockholm and then as a Clarendon Lecture at the University of Oxford (Kiyotaki and Moore 2001). We are grateful for feedback from many conference and seminar participants. In particular, we thank Olivier Blanchard, Markus Brunnermeier, V. V. Chari, Marco Del Negro, Edward Green, Bengt Holmstrom, Olivier Jeanne, Arvind Krishnamurthy, Narayana Kocherlakota, Guido Lorenzoni, Robert Lucas, Kiminori Matsuyama, Ellen McGrattan, Shouyong Shi, Jonathan Thomas, Robert Townsend, Neil Wallace, Randall Wright, and Ruilin Zhou for very helpful discussions and criticisms. We also thank Robert Shimer, Harald Uhlig, and two anonymous referees for thoughtful comments. We express our special gratitude to Wei Cui for his excellent research assistance. Kiyotaki acknowledges financial support from the US National Science Foundation, and Moore acknowledges financial support from the Leverhulme Trust, the European Research Council, and the UK Economic and Social Research Council. Publisher Copyright: {\textcopyright} 2019 by The University of Chicago. All rights reserved.",
year = "2019",
month = dec,
day = "1",
doi = "10.1086/701891",
language = "English (US)",
volume = "127",
pages = "2926--2966",
journal = "Journal of Political Economy",
issn = "0022-3808",
publisher = "University of Chicago",
number = "6",
}