Auray, Stephane; Collard, Fabrice; Feve, Patrick - In: Review of Economic Dynamics 8 (2005) 1, pp. 48-67
This paper studies the dynamic properties of a standard cash-in-advance model modified to include habit persistence over preferences. The central bank is assumed to follow an exogenous money growth rule. We show that equilibrium real indeterminacy is more likely to occur when habit persistence...