In a general equilibrium model with money we show that anticipated changes in monetary policy have real effects if markets are incomplete and have no real effects if markets are complete. Unanticipated changes in monetary policy always have real effects.
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Paper provided by University of Bonn, Germany in its series Discussion Paper Serie A with number
267.
Length: Date of creation: Dec 1989 Date of revision: Handle: RePEc:bon:bonsfa:267
Contact details of provider: Postal: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany Fax: +49 228 73 9221 Web page: http://www.bgse.uni-bonn.de/index.php?id=517
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