This paper presents a model of the gold standard in which technology and preferences are modelled explicitly, and account is taken of both the durability of gold and the exhaustibility of gold ore. We examine the steady state and its associated dynamics, and show how the steady-state price level...

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...