Question: In the monetary intertemporal model show that it is possible

In the monetary intertemporal model, show that it is possible to have an equilibrium where money is not held and only credit cards are used in transactions. Is there such a thing as a price level in this equilibrium? Does monetary policy work? If so, how? Explain your results and what they mean for actual economies.

View Solution:

Sale on SolutionInn
  • CreatedDecember 05, 2014
  • Files Included
Post your question