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Persistent link: https://www.econbiz.de/10011308616
This article considers an overlapping generations model with nominal idiosyncratic shocks. Such shocks are described as if they are exogenous nominal taxes/subsidies and cause nondegenerate ex-post distributions of money. We then show that the optimal money growth rate exists and is greater than one
Persistent link: https://www.econbiz.de/10013077241