Ireland, Peter N. (contributor) - 2005 - This version: January 2005
distributional effects that give rise to a real balance effect, thereby eliminating the liquidity trap. These same distributional …
No. 05‐3
The Liquidity Trap, the Real Balance Effect,
and … conventional specification in which there is a single infinitely lived representative agent.
The paper shows that with a growing population, monetary policy has distributional effects
that give rise to a real balance effect, thereby eliminating the liquidity trap …