The real effects of money growth in dynamic general equilibrium

Liam Graham and Dennis J. Snower

No 412, Working Paper Series from European Central Bank

Abstract: We analyse the effects of money growth within a standard New Keynesian framework and show that the interaction between staggered nominal contracts and money growth leads to a long-run trade-off between output and money growth. We explore the microeconomic mechanisms that lead to this trade-off, and show that it remains even when the contract length is endogenised. JEL Classification: E20, E40, E50

Keywords: inflation; nominal inertia; Phillips curve; unemployment (search for similar items in EconPapers)
Date: 2004-11
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Citations: View citations in EconPapers (26)

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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbwps:2004412

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