Different long-run rates of growth of money supply are eventually reflected in different rates of inflation. Tobin studied this in a simple descriptive model with aggregate saving depending only on current income. It was found that money growth was associated with higher capital stock and output...

Inflation, Unemployment, and Monetary Policy -- Contents -- Introduction -- Inflation, Unemployment, and Monetary Policy -- How Cautious Must the Fed Be? -- Monetary Policy Guidelines for Employment and Inflation Stability -- Comments -- Responses -- Rejoinder -- Contributors -- Notes --...