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Kenji Miyazaki
''A note on continuous time models with general cash-in-advance constraints''
( 2010, Vol. 30 No.4 )
This note completely characterizes continuous time models with general cash-in-advance constraints in that money is demanded for purchasing not only consumption goods but also for making all or some investments. Examining the three-dimensional dynamics of an exogenous growth model with general cash-in-advance constraints is unique. Comparative static analysis shows that increased inflation or a strengthened cash-in-advance constraint lowers the level of the capital stock in the long run. We also show that the steady state is locally stable.
Keywords: endogenous time preference, superneutrality, transition path, cash-in-advance, complementarity
JEL: E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General
O4 - Economic Growth and Aggregate Productivity: General
Manuscript Received : Sep 20 2010 Manuscript Accepted : Oct 31 2010

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