caa a22 4500 605475946 CHVBK 20210128105155.0 cr unu---uuuuu 210128e20150601xx s 000 0 eng 10.1007/s00199-014-0817-z doi (NATIONALLICENCE)springer-10.1007/s00199-014-0817-z Monetary transaction costs and the term premium [Elektronische Daten] [Raphael Espinoza, Dimitrios Tsomocos] We show that, in a monetary equilibrium, trade and asset prices depend on both the supply of liquidity by the central bank and the liquidity of assets and commodities. Because money demand is a function of the liquidity of assets and commodities, monetary aggregates provide information on trade inefficiencies and are thus instructive for the conduct of monetary policy. We also show that assets that promise higher payoffs in liquidity constrained states in the future are relatively more expensive. This generates a term premium in the yield curve, even in absence of aggregate real uncertainty. The term premium is also higher than what would be calibrated in a representative agent model because monetary costs affect individual agents' marginal utilities even if aggregate income is unaffected. Our results hold in any monetary economy with heterogeneous agents and short-term liquidity effects, where monetary costs act as transaction costs and the quantity theory of money is verified. Springer-Verlag Berlin Heidelberg, 2014 Liquidity nationallicence Cash-in-advance constraints nationallicence Monetary aggregates nationallicence Term structure of interest rates nationallicence Espinoza Raphael Research Department, International Monetary Fund, Washington, DC, USA aut Tsomocos Dimitrios Said Business School and St Edmund Hall, University of Oxford, Oxford, UK aut Economic Theory Springer Berlin Heidelberg 59/2(2015-06-01), 355-375 0938-2259 59:2<355 2015 59 199 https://doi.org/10.1007/s00199-014-0817-z text/html Onlinezugriff via DOI BK010053 XK010053 XK010000 Metadata rights reserved Springer special CC-BY-NC licence nationallicence 1 research-article jats NATIONALLICENCE NATIONALLICENCE NL-springer NATIONALLICENCE 856 40 https://doi.org/10.1007/s00199-014-0817-z text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Espinoza Raphael Research Department, International Monetary Fund, Washington, DC, USA aut NATIONALLICENCE 700 1- Tsomocos Dimitrios Said Business School and St Edmund Hall, University of Oxford, Oxford, UK aut NATIONALLICENCE 773 0- Economic Theory Springer Berlin Heidelberg 59/2(2015-06-01), 355-375 0938-2259 59:2<355 2015 59 199 SWISSBIB 37142903X