2013 Fiscal Year Final Research Report
Foundamental Theory of Money and Employment
| Project/Area Number |
23530215
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Multi-year Fund |
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| Section | 一般 |
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| Research Field |
Economic theory
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| Research Institution | The University of Tokyo |
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Principal Investigator |
OTAKI MASAYUKI 東京大学, 社会科学研究所, 教授 (60183761)
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| Project Period (FY) |
2011 – 2013
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| Keywords | ケインズ経済学 / 貨幣経済のミクロ理論 / 財政・金融政策の経済厚生 / 財政乗数 / 伸縮的価格 / 非自発的失業 |
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| Research Abstract |
The reserch has achieved substantial contributions to monetary theory. The basic concept of the developed theory is that money can circulate (the equilibrium price is bounded) because its rationally expected future value is stable (i.e., people are confident on the value of money). This assertion is formulated by a first order difference equation of the equilibrium price sequence, which is independent of the nominal money supply. This equation implies that money is intrisically non-neutral. Based on this equation, we have established a microeconomic foundation of Keynesian economics, which is compatible with neoclassical microeconomics in the sense that the theory excludes entirely ad-hoc money in the utility assumption and menu costs. The Fruits of the research are disseminated via three books (in Japanese) and twenty papers in refereed academic Journals in English.
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