Series: IMF Working Papers
Author(s): Lihong Liu , and Anne Sibert
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 October 1993
Keywords: money growth, inflation, money demand, monetary policy, monetary fund
Our model is a variant of the cash-in-advance model. Goods must be purchased in the seller’s currency, but currency may be traded before shopping at a cost. This cost is a measure of substitutability. The mo...