Abstract
In the previous chapter we presented a simple version of a cash-in-advance framework in order to challenge the bubbly view on money from a fundamentalist perspective. In particular, we assumed in chapter 7 that a fixed fraction of purchases needed to be settled by payment in cash. Obviously, this is a questionable assumption, and certainly it is not suited to give a satisfactory account of the long run. We therefore summarize in this chapter briefly more involved specifications discussed in the cash-in-advance literature and present then a framework which permits a more subtle discussion of the superneutrality issue.
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© 1999 Springer-Verlag Berlin Heidelberg
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von Thadden, L. (1999). Variation 4: Differentiated goods, multiple means of payment, and money as single outside asset. In: Money, Inflation, and Capital Formation. Lecture Notes in Economics and Mathematical Systems, vol 479. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-58556-2_9
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DOI: https://doi.org/10.1007/978-3-642-58556-2_9
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-66456-7
Online ISBN: 978-3-642-58556-2
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