Money and Growth under Uncertainty.
Abstract
The paper discusses the welfare implications of monetary policy in a general equilibrium neoclassical growth framework. Conditions are discussed in which individuals face uncertainty in their own production processes and therefore have a portfolio demand for money as a safe asset. When individuals cannot trade risks, a Pareto efficient allocation is described which may still be approximated by government action which creates money and sets up a suitable taxsubsidy policy. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Oct 01, 1970
- Accession Number
- AD0716448
Entities
People
- Louis Gevers
Organizations
- Harvard University