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Seoul Journal of Economics
[ Article ]
Seoul Journal of Economics - Vol. 14, No. 4, pp.92-100
ISSN: 1225-0279 (Print)
Print publication date 30 Nov 2001

Optimal Quantity of Money with Two-Sided Altruism

Keuk-Soo Kim
Trade Research Institute Korea International Trade Association Samsung-dong, Gangnam-gu, Seoul, Korea, Tel: +82-2-6000-5173, Fax: +82-2-6000-5170 kimksoo@kita.or.kr

JEL Classification: O42

Abstract

This paper examines optimal monetary policy in an overlapping generations economy where agents exhibit altruism toward both their parents and offspring. It has shown that inflation is optimal for an equilibrium in which only gift motive is operative. We note this as an interesting exception to the Friedman rule.

Keywords:

Optimal quantity of money, Two-sided altruism

Acknowledgments

The author gratefully acknowledges Ted Palivos and two anonymous referees for helpful comments and suggestions.

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