Thursday , November 21 2024
Home / Dirk Niepelt / “Payments and Prices,” CEPR/SNB, 2023

“Payments and Prices,” CEPR/SNB, 2023

Summary:
CEPR Discussion Paper 18291 and SNB Working Paper 3/2023, July 2023. HTML, PDF (local copy CEPR, local copy SNB). We analyze the effect of structural change in the payment sector and of monetary policy on prices. Means of payment are obtained through portfolio choices and commodity sales and “liquified” through velocity choices. Interest rates, intermediation margins, and costs of payment instrument use affect portfolios, velocities, liquidity, relative prices, and the aggregate price level. Money is neutral, interest rate policy is not. Scarcer liquidity need not drive up velocity. Payment instruments and velocities generate positive externalities. Commodity price aggregates mis-measure consumer price inflation, distinctly so over the business cycle.

Topics:
Dirk Niepelt considers the following as important: , , , , , , , , ,

This could be interesting, too:

Claudio Grass writes Gold climbing from record high to record high: why buy now?

Marc Chandler writes FX Becalmed Ahead of the Weekend and Next Week’s Big Events

Joseph Y. Calhoun writes Weekly Market Pulse: Questions

Dirk Niepelt writes The New Keynesian Model and Reality

CEPR Discussion Paper 18291 and SNB Working Paper 3/2023, July 2023. HTML, PDF (local copy CEPR, local copy SNB).

We analyze the effect of structural change in the payment sector and of monetary policy on prices. Means of payment are obtained through portfolio choices and commodity sales and “liquified” through velocity choices. Interest rates, intermediation margins, and costs of payment instrument use affect portfolios, velocities, liquidity, relative prices, and the aggregate price level. Money is neutral, interest rate policy is not. Scarcer liquidity need not drive up velocity. Payment instruments and velocities generate positive externalities. Commodity price aggregates mis-measure consumer price inflation, distinctly so over the business cycle.

Dirk Niepelt
Dirk Niepelt is Director of the Study Center Gerzensee and Professor at the University of Bern. A research fellow at the Centre for Economic Policy Research (CEPR, London), CESifo (Munich) research network member and member of the macroeconomic committee of the Verein für Socialpolitik, he served on the board of the Swiss Society of Economics and Statistics and was an invited professor at the University of Lausanne as well as a visiting professor at the Institute for International Economic Studies (IIES) at Stockholm University.

Leave a Reply

Your email address will not be published. Required fields are marked *