We suggest a simple variant of Uzawa preferences which has the same predictions as his formulation, but is less prone to criticism. We assume that the rate of time preference is an increasing function of the total value of current financial assets. It is shown that an increase in the rate of...

This model demonstrates a restatement of the Mundell-Tobin effect and monetary non-superneutrality using an infinitely lived, representative agent model. The rate of time preference is assumed to be an increasing function of the total value of current financial wealth. An increase in the...