A note on cash-in-advance constraints in continuous time

This paper demonstrates a robust proof of the continuous-time transformations of Stockman's cash-in-advance constraints. When the constraint applies to consumption and capital purchases, monetary growth lowers steady state consumption and capital. When the constraint applies only to consumption purchases, monetary growth is superneutral.

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Year of publication:	2004-02-11
Authors:	Kam, Eric
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 5.2004, 4, p. 1-8
Publisher:	AccessEcon
Subject:	Cash-in-Advance Constraints

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Extent:	application/pdf
Type of publication:	Article
Classification:	E0 - Macroeconomics and Monetary Economics. General
Source:	RePEc - Research Papers in Economics

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