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Money Growth Rules and Price Level Determinacy

Author

Listed:
  • Charles T. Carlstrom

    (Federal Reserve Bank of Cleveland)

  • Timothy S. Fuerst

    (Bowling Green State University)

Abstract

Do exogenous money growth rules produce price level determinacy? This is a classic topic in monetary theory. This paper contributes to this literature by examining the effect of money demand timing. The paper demonstrates how conditions for determinacy vary depneding upon whether the theoretical model uses 'cash-in-advance' timing or 'cash-when-I'm-done' timing. This issue is addressed in an endowment economy and a standard production economy. (Copyright: Elsevier)

Suggested Citation

  • Charles T. Carlstrom & Timothy S. Fuerst, 2003. "Money Growth Rules and Price Level Determinacy," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 6(2), pages 263-275, April.
    • Handle: RePEc:red:issued:v:6:y:2003:i:2:p:263-275
    DOI: 10.1016/S1094-2025(03)00010-3
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    References listed on IDEAS

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