type="main" xml:lang="en" <p>This paper examines the stability of the disequilibrium money model, with endogenous money and transitory interest rate control by the Central Bank. In the tradition of the post-Keynesian literature, the money supply is determined by bank lending and disequilibrium...</p>

In this paper, we embed the Taylor interest rate rule in a simple macroeconomic model with Calvo contracts. We contrast this with the case in which the interest rate is determined by the conventional LM curve along with a fixed value for the monetary aggregate. We derive conditions under which...

A simple model of inflation is proposed. The model is set in discrete time and consists of a demand for money equation, a government budget constraint, and two alternative mechanisms for the formation of expectations of the inflation rate--adaptive expectations and rational expectations. It is...