University of AmsterdamUniversity of AmsterdamUvA

  • Terms of use
  • Contact

UvA-DARE (Digital Academic Repository)

  • Home
  • Advanced Search
  • Browse
  • My selection

Search UvA-DARE

Author
C.A. Stoltenberg
Year
2012
Title
Real balance effects, timing, and equilibrium determination
Journal
Journal of Money, Credit and Banking
Volume | Issue number
44 | 5
Pages (from-to)
981-994
Document type
Article
Faculty
Faculty of Economics and Business (FEB)
Institute
Amsterdam School of Economics Research Institute (ASE-RI)
Abstract
By assuming that money balances at the beginning instead of at the end of the period provide transaction services, standard results on nominal and real determinacy in monetary models are overturned. The key is that predetermined real money balances can be a state variable. Whereas the determination of the absolute price level typically depends on fiscal policy under an exogenous interest setting, nominal determinacy is now achieved even when fiscal policy is Ricardian. Also, in contrast to the Taylor principle, the interest rate policy should respond passively to changes in inflation, thus ensuring nonoscillatory and locally stable equilibrium sequences.
URL
go to publisher's site
Language
English
Permalink
http://hdl.handle.net/11245/1.380879

Disclaimer/Complaints regulations

If you believe that digital publication of certain material infringes any of your rights or (privacy) interests, please let the Library know, stating your reasons. In case of a legitimate complaint, the Library will make the material inaccessible and/or remove it from the website. Please Ask the Library, or send a letter to: Library of the University of Amsterdam, Secretariat, Singel 425, 1012 WP Amsterdam, The Netherlands. You will be contacted as soon as possible.

PrintPrint this pageShareShare via emailShare on facebookShare on linkedinShare on twitter
  • University library
  • About UvA-DARE
  • Disclaimer
Copyright UvA 2014