Bhattacharya, Joydeep; Haslag, Joseph; Martin, Antoine - Department of Economics, Iowa State University - 2005
The Friedman rule, a widely studied prescription for monetary policy, is optimal in Townsend's turnpike model of money; it is not so in the overlapping generations version of his stochastic relocation model of money. We investigate these monetary models in the light of this disparity. To that...