haku: @indexterm Monetary economics / yhteensä: 201
viite: 31 / 201
| Tekijä: | Boyd, J. H. Smith, B. D. |
| Otsikko: | Capital market imperfections in a monetary growth model |
| Lehti: | Economic Theory
1998 : VOL. 11:2, p. 241-273 |
| Asiasana: | MONETARY ECONOMICS GROWTH CAPITAL MARKETS FINANCIAL INTERMEDIARIES |
| Kieli: | eng |
| Tiivistelmä: | This paper examines the behavior of a model that, in the absence of any credit market frictions, is an otherwise standard monetary growth model. The presence of an explicit credit market characterized by a simple costly state verification problem substantially alters the properties of equilibria in this economy. If any monetary steady states exist there are two of them, and it can transpire that one is a sink and one is a saddle. Thus nonconvergence phenomena and an indeterminacy of monetary equilibrium can be observed. If the high-capital-stock steady state is not always a sink, increases in the rate of money growth can ultimately induce the existence of oscillatory equilibrium paths approaching steady state. Further increases in the money growth may lead to the occurrence of a Hopf bifurcation. |
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