The Role of Monetary Policy in Eliminating Nonconvergent Dynamic Paths
在货币效用模型和交易成本模型中研究货币增长对非收敛动态路径的影响，发现结果取决于相对风险厌恶和交易成本函数的形式。
This paper investigates the effects of money growth on nonconvergent dynamic paths in a money-in-utility model. When relative risk aversion is decreasing in money, period-two cycle and sunspot equilibria are always associated with a high rate of money supply growth. However, when relative risk aversion is increasing in money, it is ambiguous whether they are associated with either high or low rate of money supply growth. The paper also investigates the same problem in a transaction cost model. The author shows that the results essentially depend on the form of the transaction cost function. Copyright 1997 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.