Miguel Sidrauski incorporated this thing into the utility function.
Miguel Sidrauski incorporated this thing into the utility function. When this entity is held in intertemporal models considering real variables, its value in time t plus one is divided by 1 plus pi-sub-t. In the Lucas Islands model, this thing is long-run neutral, but short-run changes in its supply can briefly alter production. Its creation can produce profits via seigniorage. The demand for it is proportional to one's liquidity preference, and nominal values of other goods are roughly proportional to its supply. The "bad" type of this entity drives out the good, according to Gresham's Law. For 10 points, identify this substance whose namesake type of government policy can alter inflation or interest rates, and is contrasted with fiscal policy.
Miguel Sidrauski incorporated this thing into the utility function.
money [accept word forms like monetary policy, accept currency but prompt on the names of any specific currencies, accept synonyms like cash, dough, cheddar, moolah, bread, smackeroos, etc.]