Cash-in-Advance Constraints in the Diamond Overlapping Generations Model: Neutrality and Optimality of Monetary Policies

This paper is a study of money in overlapping generations models with cash-in-advance constraints a la Champ and Freeman and Hahn and Solow. We first offer a brief review of different features of the cash-in-advance constraint. Then we propose a general formulation. We show that neutrality of money prevails when the ratios of lum-sum monetary transfers and public expenditures to the money supply do not depend on the money growth rate.

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Year of publication:	1997
Authors:	Crettez, B. ; Michel, P. ; Wigniolle, B.
Institutions:	Centre de recherche de mathématiques et économie mathématique (CERMSEM), Centre d'Économie de la Sorbonne
Subject:	MONEY \| MONETARY POLICY \| GENERATIONS

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Series:	Papiers d'Economie Mathématique et Applications.
Type of publication:	Book / Working Paper
Notes:	29 pages
Classification:	E31 - Price Level; Inflation; Deflation ; E41 - Demand for Money ; E52 - Monetary Policy (Targets, Instruments, and Effects)
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005478339