K, Gillman Max; Oleg, Yerokhin - In: The B.E. Journal of Macroeconomics 5 (2005) 1, pp. 1-24
This paper conducts a Ramsey analysis within an endogenous growth cash-in-advance economy with policy commitment. Credit and money are alternative payment mechanisms that act as inputs into the household production of exchange. The credit is produced with a diminishing returns technology with...