Construct · 1 fields · 1 citations

Friedman rule: a standalone construct

One name. One construct. A landmark on the map.

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Friedmanrule1 CONSTRUCTFriedman ruleCHARI · MONETARY ECONOMICS

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Monetary economics

the policy of setting the nominal interest rate to zero so that holding money carries no opportunity cost, and conditions under which it is optimal.

In monetary economics, Friedman rule refers to the policy of setting the nominal interest rate to zero so that holding money carries no opportunity cost, and conditions under which it is optimal. This meaning comes from Chari (1996) in Journal of Monetary Economics.[1]

Unit
Recovery means
Measured by

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Nearby constructs

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References

  1. Chari, V. V., Christiano, L. J., & Kehoe, P. J. (1996). Optimality of the Friedman rule in economies with distorting taxes. Journal of Monetary Economics, 37(2), 203-223. https://doi.org/10.1016/s0304-3932(96)90034-3

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