Some people say they don't like money search. Sure, in its current state it's far from being able to explain any data but do you want to put money in the utility function forever?
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what's wrong with money search?
(26 posts)-
Posted 2 months ago #
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Everyone searches for money.
Posted 2 months ago # -
Money search tries to give micro foundations to the demand for money. It is as ad hoc as money in the utility function but it's harder to solve the models making simplifying assumptions required. Under those simplifying assumptions, it leads to predictions that can't account for the data.
Posted 2 months ago # -
Money search is mental masturbation.
Posted 2 months ago # -
What isn't wrong with money search?
Posted 2 months ago # -
I've never thought about why I hold money. I just do.
Hence, money search is bad.
Posted 2 months ago # -
I hold money because I'm forced to. Hence, cash in advance is good.
Posted 2 months ago # -
The paradox is that the true concept of money is very difficult. It's so hard that some guys just quit and use an adhoc demand for money. Search-money is an attempt to understand what money is, but it's still too green to be useful for policy purposes.
Posted 2 months ago # -
That's because you have never studied history of economic thought. Irving Fisher had a much better understanding of the concept of money than Randy Wright.
Posted 2 months ago # -
Give me money, that's what I want!
Posted 2 months ago #