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2006-10-12Buch DOI: 10.18452/4003
Real Balance Effects, Timing and Equilibrium Determination
dc.contributor.authorStoltenberg, Christian
dc.date.accessioned2017-06-15T23:17:26Z
dc.date.available2017-06-15T23:17:26Z
dc.date.created2006-10-18
dc.date.issued2006-10-12
dc.identifier.issn1860-5664
dc.identifier.urihttp://edoc.hu-berlin.de/18452/4655
dc.description.abstractThis paper examines whether the existence and the timing of real balance effects contribute to the determination of the absolute price level, as suggested byPatinkin (1949,1965), and if they affect conditions for local equilibrium uniqueness and stability. I show that there exists a unique price level sequence that is consistent with an equilibrium under interest rate policy, only if beginning-of-period money yields transaction services. Predetermined real money balances can then serve as a state variable, implying that interest rate setting must be passive -a violation of the Taylor-principle - for unique, stable, and non-oscillatory equilibrium sequences. On the contrary, when the end-of-period money stock facilitatestransactions, the equilibrium displays nominal indeterminacy and equilibrium uniqueness requires an interest rate setting consistent with the Taylor-principle.eng
dc.language.isoeng
dc.publisherHumboldt-Universität zu Berlin, Wirtschaftswissenschaftliche Fakultät
dc.rights.urihttp://rightsstatements.org/vocab/InC/1.0/
dc.subjectReal balance effectseng
dc.subjectpredetermined moneyeng
dc.subjectprice level determinationeng
dc.subjectreal determinacyeng
dc.subjectmonetary policy ruleseng
dc.subjectflexible priceseng
dc.subject.ddc330 Wirtschaft
dc.titleReal Balance Effects, Timing and Equilibrium Determination
dc.typebook
dc.identifier.urnurn:nbn:de:kobv:11-10069015
dc.identifier.doihttp://dx.doi.org/10.18452/4003
dc.subject.dnb17 Wirtschaft
local.edoc.container-titleSonderforschungsbereich 649: Ökonomisches Risiko
local.edoc.pages45
local.edoc.type-nameBuch
local.edoc.container-typeseries
local.edoc.container-type-nameSchriftenreihe
local.edoc.container-volume2006
local.edoc.container-issue73
local.edoc.container-year2006
local.edoc.container-erstkatid2195055-6

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