@techreport{Heer2011cash,
abstract = {In most monetary models of economic growth, higher long-run inflation is associated with a decline in the growth rate and employment. We show that this result is sensitive with respect to the specification of the cash-in-advance constraint. We consider three types of endogenous growth models: 1) the AK-model, 2) the Lucas (1990) supply-side model, and 3) the two-sector model of Jones and Manuelli (1995). With the standard cash-in-advance constraint on consumption, higher inflation results in lower growth and employment in all three models, while, in the cash-credit good economy of Dotsey and Ireland (1996), the effect is the exact opposite.},
address = {M\"{u}nchen},
author = {Burkhard Heer and Alfred Maussner},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {O42; 330; inflation; growth; costly credit; search unemployment},
language = {eng},
number = {3647},
publisher = {CESifo},
title = {The cash-in-advance constraint in monetary growth models},
type = {CESifo working paper: Fiscal Policy, Macroeconomics and Growth},
url = {http://hdl.handle.net/10419/52477},
year = {2011}
}
