The paper "Nonneutrality of Money in Dispersion: Hume Revisited", coauthored by Assistant Professor Gu JIN of the School of Finance and Professor Tao ZHU of the Hong Kong University of Science and Technology, was accepted by the international top journalInternational Economic Review.

Gu JIN is an Assistant Professor at the School of Finance of the Central University of Finance and Economics. He holds a Ph.D. in Economics from the Hong Kong University of Science and Technology. His research interests include monetary economics, macroeconomics, and search theory. His paper was presented at academic conferences hosted by the Federal Reserve and the Bank of Canada.

Nonneutrality of Money in Dispersion: Hume Revisited

Abstract:For a class of standard and widely-used preferences, a one-shot money injection in a standard matching model can induce a significant and persistent output response by dispersing the distribution of wealth. Decentralized trade matters for both persistence and significance. In the presence of government bonds the injection has a liquidity effect and the inflation rate right following the injection may be below the steady-state rate level.