Random matching and money in the neoclassical growth model: some analytical results

Christopher Waller

No 2009-034, Working Papers from Federal Reserve Bank of St. Louis

Abstract: I use the monetary version of the neoclassical growth model developed by Aruoba, Waller and Wright (2008) to study the properties of the model when there is exogenous growth. I first consider the planner's problem, then the equilibrium outcome in a monetary economy. I do so by first using proportional bargaining to determine the terms of trade and then consider competitive price taking. I obtain closed form solutions for the balanced growth path of all variables in all cases. I then derive closed form solutions for the transition paths under the assumption of full depreciation and, in the monetary economy, a non-stationary interest rate policy.

Keywords: Monetary policy; Econometric models (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-cba, nep-dge, nep-fdg and nep-mon
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Citations: View citations in EconPapers (10)

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Related works:
Journal Article: RANDOM MATCHING AND MONEY IN THE NEOCLASSICAL GROWTH MODEL: SOME ANALYTICAL RESULTS (2011)
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DOI: 10.20955/wp.2009.034

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