Template-type: ReDIF-Article 1.0
Author-Name: Luis Araujo
Author-Email: araujolu@msu.edu
Author-Workplace-Name: Michigan State University and Sao Paulo School of Economics - FGV
Author-Name: Andrei Shevchenko
Author-Email: shevchen@msu.edu
Author-Workplace-Name: Michigan State University
Title: The Short-Run Effects of Unanticipated Monetary Shocks under Distinct Trading Mechanisms
Abstract: We unveil the existence of a trade-off between efficiency and information transmission in a decentralized economy subject to a monetary shock. If the objective is to maximize information transmission, then the optimal trading protocol is inherently inefficient. If, instead, the objective is to maximize efficiency, then the optimal trading protocol is necessarily uninformative.
Classification-JEL: E40, D82, D83
Keywords: monetary uncertainty, search, information transmission, trading protocols
Journal: Russian Journal of Money and Finance
Pages: 76-88
Volume: 77
Issue: 3
Year: 2018
Month: September
DOI: 10.31477/rjmf.201803.76
File-URL: https://rjmf.econs.online/upload/iblock/d47/RJMF_77-03_ENG_Araujo.pdf
Handle: RePEc:bkr:journl:v:77:y:2018:i:3:p:76-88