ISBN: 3-540-66456-4
TITLE: Money, Inflation, and Capital Formation
AUTHOR: Thadden, Leopold von
TOC:

Introduction 1
I Money, inflation, and capital formation in the  long run: general remarks 5
1 Summary of the literature: theoretical aspects 7
2 Summary of the literature: empirical aspects 19
3 Further reflections on money 29
II Money, inflation, and capital formation: the perspective of overlapping generations models 43
4 The Diamond model with money as single outside asset 45
4.1 The model 46
4.2 Equilibrium conditions 51
4.3 Policy effects 58
4.4 Discussion 61
4.5 Appendix 63
5 Variation 1: Imperfect credit markets and asymmetric information 65
5.1 The model 67
5.2 Equilibrium conditions 71
5.3 Policy effects 74
5.4 Discussion 77
5.5 Appendix 79
6 Variation 2: Random liquidity needs 82
6.1 The model 85
6.2 Equilibrium conditions 89
6.3 Policy effects 92
6.4 Discussion 95
6.5 Appendix 97
7 Variation 3: Standard cash-in-advance constraint and endogenous savings 99
7.1 The model 101
7.2 Equilibrium conditions 104
7.3 Policy effects 106
7.4 Appendix 110
8 Variation 4: Differentiated goods, multiple means of payment, and money as single outside asset 113
8.1 The model 117
8.2 Equilibrium conditions 123
8.3 The regime with an exogenous cash-in-advance constraint 126
8.4 The regime with an endogenous cash-in-advance constraint 135
8.5 Appendix 1: Standard problem of the consumer 138
8.6 Appendix2: The regime with an endogenous cash-in-advance constraint 140
8.7 Appendix3: The regime with an exogenous cash-in-advance constraint 144
8.8 Appendix 4: Plots 149
9 Variation 5: Differentiated goods, multiple means of payment, and alternative specifications of government activities 153
9.1 Differentiated goods, multiple means of payment, and multiple outside assets 155
9.2 Differentiated goods, multiple means of payment, and productive government expenditures 160
9.3 Appendix 164
Summary 166
Appendix I: Technology 169
Appendix II: Dynamics 176
References 183
List of Figures 192
END
