Bhattacharya, Joydeep; Singh, Rajesh Kumar - Iowa State University of Science and Technology <Ames, … - 2005
Faced with real and nominal shocks, what should a benevolent central bankdo,
x the money growth rate or target the inflation rate? In this paper, wemake a
rst attempt at studying the optimal choice of monetary policy in-struments in a micro-founded model of money. Speci
cally, we produce...