.wen@stls.frb.org.
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1 Introduction
This paper reconsiders the business-cycle and welfare e�ects of money by generalizing Bewley�s
(1980 … money.1 The model is applied
to studying some important issues in monetary literature, including (i) the business … address some of the issues considered in this paper, such as
the dynamics of velocity, the monetary business cycle, the …