Search and Matching Approach In Monetary Theory: New Monetarism

Abstract

Models in monetary economics literature mainly accept that money is valuable and take the quantity of money in the focus of interest but not the role of money as a medium of exchange. According to the New Monetarist Economics point of view, in order to make progress in monetary theory and policy analysis, explicit models that give rise to a role for fiat money as a medium of exchange - that shows how fiat money, which is an intrinsically valueless asset, the role as a medium of exchange – need to be established. To achieve this, the exchange process in decentralized markets and what happens during the agents’ utility maximization process should be modeled. The most convenient instrument to internalize and model the role of money as a medium of exchange is search and matching approach which is a game-theoretic method that takes microfoundations in the exchange process into account. In this study a class of basic search and matching models used in modeling the exchange process and the role of money as medium of exchange in particular are examined and the main ideas about the subject are conveyed.

Keywords

• New Monetarism
• Search and Matching Models
• Monetary Theory
• Yeni Parasalcılık
• Arama ve Eşleşme Teorisi
• Para Teorisi

Para Teorisinde Arama ve Eşleşme Yaklaşımı: Yeni Parasalcılık

Öz

Parasal iktisat literatüründeki modeller genellikle paranın değerli olduğunu kabul ederek para miktarını ilgi odağına alan ancak paranın değişim aracı rolü üzerinde durmayan modellerdir. Yeni Parasalcı İktisat yaklaşımının görüşüne göre parasal teori ve politika analizinde gelişme sağlanabilmesi için karşılıksız paranın değişim aracı rolü almasını sağlayan - yani aslen değersiz bir varlık olan karşılıksız paranın değişim işlemlerinde nasıl değişim aracı rolü üstlendiğini gösteren - açık modeller kurulması gerekmektedir. Bunu yapabilmek için dağınık piyasada değişim sürecinin nasıl geliştiğini, oyuncuların faydalarını maksimize etmeleri sürecinde neler olduğunu modelleyebilmek gerekir. Paranın değişim aracı rolünü içselleştirerek modellemek için en uygun araç, değişim sürecindeki miktoremelleri göz önüne alan ve oyun teorik bir yöntem olan arama ve eşleşme yaklaşımıdır (search and matching approach). Bu çalışmada; değişim sürecinin ve özellikle paranın değişim aracı rolünün modellenmesinde kullanılan temel arama ve eşleşme modelleri incelenerek konu ile ilgili bazı ana fikirler aktarılmıştır.

Anahtar Kelimeler

• Yeni Parasalcılık
• Arama ve Eşleşme Teorisi
• Para Teorisi

References

1. Akerlof, G. A. (1970). The Market for "Lemons": Quality Uncertainty and Market Mechanism. The Quarterly Journal of Economics, 84(3), 488-500.
2. Aruoba, S. B. & Wright, R. (2003). Search, Money and Capital: A Neoclassical Dichotomy. Journal of Money, Credit and Banking, 35(6), 1085-1105.
3. Aruoba, S. B., Rocheteau, G. & Waller, C. (2007). Bargaining and the Value of Money. Journal of Monetary Economics, 54(8), 2636-2655.
4. Banerjee, A. V. & Maskin, E. S. (1996). A Walrasian Theory of Money and Barter. The Quarterly Journal of Economics, 111(4), 955-1005.
5. Baumol, W. J. (1952). Transaction Demand for Cash: An Inventory Theoretic Approach. The Quarterly Journal of Economics, 66(4), 545-556.
6. Clower, R. W. (1967). A Reconsideration of the Microfoundations of Monetary Theory. Western Economic Journal, 6(1), 1-9.
7. Diamond, D. (1984). Financial Intermediation and Delegated Monitoring. The Review of Economis Studies, 51(3), 393-414.
8. Diamond, D. W. & Dybvig, P. H. (1983). Bank Runs, Deposit Insurance and Liquidity. Journal of Political Economy, 91(3), 401-419.

9. Diamond, P. (1982). Aggregate Demand Management in Search Equilibrium. Journal of Political Economy, 90(5), 881-894.
10. Diamond, P. (1984). Money in Search Equilibrium. Econometrica, 52(1), 1-20.
11. Gu, C., Mattesini, F., Monnet, C. & Wright, R. (2013). Banking: A New Monetarist Approach. Review of Economic Studies, 80, 636-662.
12. Hahn, F. H. (1987). The Foundations of Monetary Theory. M. de Cecco, & J.-P. Fitoussi, Monetary Theory and Economic Instituitions (21-43). Palgrave Macmillan Uk.
13. Jones, R. A. (1976). The Origin and Development of Media of Exchange. Journal of Political Economy, 84(4), 757-776.
14. Kareken, J. H. & Wallace, N. (1980). Introduction. J. H. Kareken, & N. Wallace (Ed.), Models of Monetary Economies. Minneapolis: Federal Reserve Bank of Minneapolis.
15. Kiyotaki, N. & Wright, R. (1989a). On Money as a Medium of Exchange. Journal of Political Economy, 97(4), 927-954.
16. Kiyotaki, N. & Wright, R. (1989b). A Contribution to the Pure Theory of Money. Federal Reserve Bank of MInneapolis.
17. Kiyotaki, N. & Wright, R. (1993). A Search-Theoretic Approach to Monetary Economics. The American Economic Review, 83(1), 63-77.
18. Kocherlakota, N. R. (1998). Money is Memory. Journal of Economic Theory, 81(2), 232-351.
19. Lagos, R. & Wright, R. (2005). A Unified Framework for Monetary Theory and Policy Analysis. Journal of Political Economy, 113(3), 463-484.
20. Ostroy, J. M. & Starr, R. M. (1974). Money and the Decentralization of Exchange. Econometrica, 42(6), 1093-1113.
21. Ostroy, J. M. & Starr, R. M. (1990). The Transactions Role of Money. B. M. Friedman, & M. Woodford (Ed.), Handbook of Monetary Economics (Cilt 1, 3-62). Amsterdam: North-Holland.
22. Rupert, P., Schindler, M., Shevchenko, A. & Wright, R. (2000). The Search-Theoretic Approach to Monetary Economics: A Primer. Federal Reserve Bank of Cleveland Economic Review, 10-28.
23. Samuelson, P. A. (1958). An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money. Journal of Political Economy, 66(6), 467-482.
24. Shi, S. (1995). Money and Prices: A Model of Search and Bargaining. Journal of Economic Theory, 67, 467-496.
25. Shi, S. (1997). A Divisible Search Model of Fiat Money. Econometrica, 65(1), 75-102.
26. Sidrauski, M. (1967). Inflation and Economic Growth. Journal of Political Economy, 75, 798-810.
27. Tobin, J. (1956). The Interest Elasticity of the Transactions Demand for Cash. Review of Economics and Statistics, 38(3), 241-247.
28. Tobin, J. (1980). Discussion. J. H. Kareken, & N. Wallace (Ed.), Models of Monetary Economies. MN: Federal Reserve Bank of Minneapolis.
29. Trejos, A., & Wright, R. (1995). Search, Barganing, Money and Prices. Journal of Political Economy, 103(11), 118-141.
30. Wallace, N. (1980). The Overlapping Generations Model of Fiat Money. J. Kareken, & N. Wallace (Ed.), Models of Monetary Economies. Minneapolis, MN: Federal Reserve Bank of Minneapolis.
31. Wallace, N. (1998). A Dictum for Monetary Theory. Federal Reserve Bank of Minneapolis Quarterly Review, 22(1), 20-26.
32. Wallace, N. (2011). The Mechanism-Design Approach to Monetary Theory. B. M. Friedman, & M. Woodford (Ed.), Handbook of Monetary Economics (Cilt 3A, 3-23). Amsterdam: Elsevier.
33. Walsh, C. E. (2010). Monetary Theory and Policy, (3. Baskı). Cambridge, Massachusetts: The MIT Press.
34. Weimin, W. & Shi, S. (2006). The Variability of Velocity of Money in a Search Model. Journal of Monetary Economics, 53(3), 537-571.
35. Willamson, S. D. & Wright, R. (2011). New Monetarist Economics: Models. B. M. Friedman & M. Woodford (Ed.), Handbook of Monetary Economics (Cilt 3A, 25-96). San Diego, CA: Elsevier.
36. Williamson, S. D. (2012). New Monetarist Economics: Understanding Unconventional Monetary Policy. The Economic Record, 88(Special Issue), 10-21.
37. Williamson, S. D. & Wright, R. (2010). New Monetarist Economics: Methods. Federal Reserve Bank of Minneapolis Research Department Staff Report, 442, 1-66.
38. Williamson, S. D. & Wright, R. (2011). New Monetarist Economics: Models. B. M. Friedman & M. Woodford (Ed.), Handbook of Monetary Economics (Cilt 3A, 25-96). San Diego, CA: Elsevier.
39. Wright, R. (2010). Search and Matching Model of Monetary Exchange. S. Darlauf & Blume L. (Ed.), Monetary Economics (348-356). Londra: Palgrave Macmillan.