A model of saving and demand for money. II
Matematičeskoe modelirovanie, Tome 6 (1994) no. 7, pp. 41-54
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The work continues [1]. The demand for money and saving supply functions obtained in [1] are used in a close general equilibrium model with a nonzero interest payments on cash. It is shown that interest of $\rho$ per cent per annum paid on cash will give rise to an increase of $\rho$ per cent per annum in the inflation rate. The dynamic equilibrium in an economy with heterogeneous households is studied. The equilibrium turns out to differ significantly from the one in a homogeneous economy. A model of selection of households' time preference rates is considered. The model proves the positiveness of the rate of pure time preference.
@article{MM_1994_6_7_a2,
author = {S. M. Guriev},
title = {A~model of saving and demand for {money.~II}},
journal = {Matemati\v{c}eskoe modelirovanie},
pages = {41--54},
year = {1994},
volume = {6},
number = {7},
language = {ru},
url = {http://geodesic.mathdoc.fr/item/MM_1994_6_7_a2/}
}
S. M. Guriev. A model of saving and demand for money. II. Matematičeskoe modelirovanie, Tome 6 (1994) no. 7, pp. 41-54. http://geodesic.mathdoc.fr/item/MM_1994_6_7_a2/