A note on cash-in-advance constraints in continuous time
journal contributionposted on 21.05.2021, 16:58 authored by Eric Kam
This paper demonstrates a robust proof of the continuous-time transformations of Stockman's cash-in-advance constraints. When the constraint applies to consumption and capital purchases, monetary growth lowers steady state consumption and capital. When the constraint applies only to consumption purchases, monetary growth is superneutral.