Inflation aversion and macroeconomic policy in a perfect foresight monetary model
This paper reexamines monetary non-superneutrality and the optimality of the optimum quantity of money in the money-in-utility Sidrauski model with endogenous fluctuations of the time preference by introducing inflation aversion. It is shown that the long-run superneutrality of the standard Sidrauski model does not hold, and Friedman's optimum quantity of money is not optimal.
Year of publication: |
2011
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Authors: | Wang, Gaowang ; Zou, Heng-fu |
Published in: |
Economic Modelling. - Elsevier, ISSN 0264-9993. - Vol. 28.2011, 4, p. 1802-1807
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Publisher: |
Elsevier |
Keywords: | Inflation aversion Endogenous time preference Monetary superneutrality Optimum quantity of money |
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