Inflation aversion and macroeconomic policy in a perfect foresight monetary model

Gaowang Wang and Heng-Fu Zou ()

Economic Modelling, 2011, vol. 28, issue 4, 1802-1807

Abstract: This paper reexamines monetary non-superneutrality and the optimality of the optimum quantity of money in the money-in-utility Sidrauski model with endogenous fluctuations of the time preference by introducing inflation aversion. It is shown that the long-run superneutrality of the standard Sidrauski model does not hold, and Friedman's optimum quantity of money is not optimal.

Keywords: Inflation; aversion; Endogenous; time; preference; Monetary; superneutrality; Optimum; quantity; of; money (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:28:y:2011:i:4:p:1802-1807

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