@article{bibcite_202941,
  keywords = {Money},
  author = {Markus K. Brunnermeier and Sebastian Merkel},
  title = {A Monetary Model with Money and Safe Assets},
  abstract = {<p>This paper sets forth a tractable incomplete markets monetary model with money and other nominal safe assets including a long-maturity government bond. Money serves as a medium of exchange whereas all safe assets allow agents to self-insure against risks. Portfolio demand for these assets can serve as a nominal anchor that determines the price level. The paper examines and contrasts monetary transmission mechanisms involving different monetary policy instruments and links it to classic monetary results, including the Tobin effect, the Friedman rule, Sargent-Wallace unpleasant monetarist arithmetic, Wallace-Neutrality of open market operations, and Sims{\textquoteright} stepping on a rake effect.</p>},
  year = {2026},
}