Time Preference and Interest Rate in a dynamic general Equilibrium Model

This paper reexamines the relationship between the time preference rate and the real interest rate in the neoclassical growth model by introducing Keynesian time preference. It is shown that the long-run behavior of the neoclassical growth model persists. When introduucing money by money-in-utility, money is superneutral and the optimal monetary policy is the Friedman rule.

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Year of publication:	2011-01-01
Authors:	Wang, Gaowang

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Type of publication:	Book / Working Paper
Language:	English
Notes:	Wang, Gaowang (2011): Time Preference and Interest Rate in a dynamic general Equilibrium Model.
Classification:	O42 - Monetary Growth Models ; E31 - Price Level; Inflation; Deflation ; E5 - Monetary Policy, Central Banking and the Supply of Money and Credit
Source:	BASE

Persistent link: https://www.econbiz.de/10015228917