Cash-in-Advance Constraints in the Diamond Overlapping Generations Model: Neutrality and Optimality of Monetary Policies

B. Crettez, Philippe Michel and Bertrand Wigniolle

Papiers d'Economie Mathématique et Applications from Université Panthéon-Sorbonne (Paris 1)

Abstract: This paper is a study of money in overlapping generations models with cash-in-advance constraints a la Champ and Freeman and Hahn and Solow. We first offer a brief review of different features of the cash-in-advance constraint. Then we propose a general formulation. We show that neutrality of money prevails when the ratios of lum-sum monetary transfers and public expenditures to the money supply do not depend on the money growth rate.

Keywords: MONEY; MONETARY POLICY; GENERATIONS (search for similar items in EconPapers)
JEL-codes: E31 E41 E52 (search for similar items in EconPapers)
Pages: 29 pages
Date: 1997
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Citations: View citations in EconPapers (12)

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Related works:
Journal Article: Cash-in-Advance Constraints in the Diamond Overlapping Generations Model: Neutrality and Optimality of Monetary Policies (1999)
Working Paper: Cash-in-advance constraints in the diamond overlapping generations model: neutrality and optimality of monetary policies (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:pariem:97.52

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