We analyze optimal monetary policy under commitment in an economy with uninsurable idiosyncratic risk, long-term nominal bonds and costly inflation. Our model features two transmission channels of monetary policy: a Fisher channel, arising from the impact of inflation on the initial price of...

This paper presents an analysis of the implications it has on standard growth models assume an alternative hypothesis to the exponential growth of the population and how modeling time can alter the dynamic behavior of these models. An extension (in continuous time and discrete time) of the...