This paper is a study of money in overlapping generations models with cash-in-advance constraints a la Champ and Freeman and Hahn and Solow. We first offer a brief review of different features of the cash-in-advance constraint. Then we propose a general formulation. We show that neutrality of...

This paper uses numerical optimisation to uncover optimal policy reaction functions for a stylised small economy model under a number of targeting regimes. These policy reaction functions are presented as feedback relationships making evident the dominant state variables in the rule.