Also published in the International Finance Discussion Paper series, number 323.
A cash-in-advance constraint on consumption is incorporated into a standard model of consumption and capital accumulation. Monetary policy consists of lump-sum cash transfers. Methods are developed for establishing the existence and uniqueness of an equilibrium. and for explicitly constructing this equilibrium. The model economy's dependence on monetary policy is explored.
- Federal Reserve Bank of Minneapolis. Research Department.
Download a zip file that contains all the files in this work.