Money and Interest in a Cash-in-Advance Economy
Download or Read eBook Money and Interest in a Cash-in-Advance Economy PDF written by Nancy L. Stokey and published by . This book was released on 1987 with total page pages. Available in PDF, EPUB and Kindle.
Author | : Nancy L. Stokey |
Publisher | : |
Total Pages | : |
Release | : 1987 |
ISBN-10 | : OCLC:874708472 |
ISBN-13 | : |
Rating | : 4/5 (72 Downloads) |
Book Synopsis Money and Interest in a Cash-in-Advance Economy by : Nancy L. Stokey
Book excerpt: In this paper we analyze an aggregative general equilibrimi model in which the use of money is motivated by a cash-in-advance constraint, applied to purchases of a subset of consumption goods. The system is subject to both real and monetary shocks, which are economy-wide and observed by all. We develop methods for verifying the existence of, characterizing, and explicitly calculating equilibria. A main result of the analysis is that current money growth affects the current real allocation only insofar as it affects expectations about future money growth, i.e., only through its value as a signal