Money supply and capital accumulation on the transition path revisited

Rubens Cysne and David Turchick

No 702, FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) from EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil)

Abstract: Fischer (1979) and Asako (1983) analyze the sign of the correlation between the growth rate of money and the rate of capital accumulation on the transition path. Both plug a CRRA utility (based on a Cobb-Douglas and a Leontief function, respectively) into Sidrauski's model - yet return contrasting results. The present analysis, by using a more general CES utility, presents both of those settings and conclusions as limiting cases, and generates economic gures more consistent with reality (for instance, the interest-rate elasticity of the money demands derived from those previous works is necessarily 1 and 0, respectively).

Date: 2010-02-22
New Economics Papers: this item is included in nep-mon
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Related works:
Journal Article: Money Supply and Capital Accumulation on the Transition Path Revisited (2010)
Journal Article: Money Supply and Capital Accumulation on the Transition Path Revisited (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:fgv:epgewp:702

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