Andrei, Daniel
[Verfasser:in]
;
Herskovic, Bernard
[Sonstige Person, Familie und Körperschaft];
Ledoit, Olivier
[Sonstige Person, Familie und Körperschaft]
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments November 30, 2017 erstellt
Beschreibung:
We introduce a model of the economy as a social network. Two agents are linked to the extent that they transact with each other. This generates well-defined topological notions of location, neighborhood, and closeness. We investigate the implications of our model for monetary economics. When a central bank increases the money supply, it must inject the money somewhere in the economy. The agent closest to the location where money is injected is better off, while the one furthest is worse off. Symmetrically, any decrease in the money supply redistributes purchasing power in the other direction. This redistribution channel is independent from other previously studied channels. Our model's theoretical predictions are supported by the data