A note on cash−in−advance constraints in continuous time

Eric Kam
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Eric Kam: Ryerson University

Macroeconomics from EconWPA

Abstract: This paper demonstrates a robust proof of the continuous−time transformations of Stockman’s cash−in−advance constraints. When the constraint applies to consumption and capital purchases, monetary growth lowers steady state consumption and capital. When the constraint applies only to consumption purchases, monetary growth is superneutral.

Keywords: Cash-in-advance constraints; monetary growth; superneutrality; Tobin Effect (search for similar items in EconPapers)
JEL-codes: E (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mac
Date: Written 2004-03-22
Note: Type of Document - pdf; pages: 8

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http://129.3.20.41/eps/mac/papers/0403/0403014.pdf (application/pdf)

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