Money, Growth and Indeterminacy

  • Matthieu CAILLAT
  • Published 2001

Abstract

In this article consumers need money to reduce their transaction costs. We highlight the existence of indeterminacy under a constant money growth within an endogenous growth framework. Real indeterminacy is avoided by an alternative monetary policy such as the interest pegging. The residual price indeterminacy is also ruled out if this monetary policy is… (More)

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