cash in advance infinite model Flashcards
(4 cards)
1
Q
why is the optimal money growth a negative number?
A
2
Q
what is the friedman rule@
A
Friedman Rule: The nominal interest rate should be zero to eliminate
the inefficiency created by the cash-in-advance constraint
3
Q
what are the three markets that need to clear in the cash in advance model at the steady state?
A
4
Q
A
