@article{Bloise:269721, recid = {269721}, author = {Bloise, Gaetano and Polemarchakis, Herakles}, title = {An argument for positive nominal interest}, address = {2015-12-30}, number = {2068-2018-1545}, series = {WERP 1104}, pages = {26}, year = {2015}, abstract = {In a dynamic economy, money provides liquidity as a medium of exchange. A central bank that sets the nominal rate of interest and distributes its profit to shareholders as dividends is traded in the asset market. A nominal rates of interest that tend to zero, but do not vanish, eliminate equilibrium allocations that do not converge to a Pareto optimal allocation.}, url = {http://ageconsearch.umn.edu/record/269721}, doi = {https://doi.org/10.22004/ag.econ.269721}, }