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- W2075977330 abstract "In the one sector neoclassical monetary growth model, the balanced growth path under perfect foresight is a saddle point. The paper demonstrates that this instability problem can be resolved by entering real purchasing power into the liquidity preference function as well as into the consumption function. This process allows an additional mechanism based on income effects in money demand by which a change in real balances can influence the growth path. Stability now depends critically on the size of such income effects given wealth effects from money demand. If stability is restored, the nature of the traditional non-neutrality of money must be qualified." @default.
- W2075977330 created "2016-06-24" @default.
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- W2075977330 date "1979-12-01" @default.
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- W2075977330 title "Real purchasing power in the neoclassical monetary growth model" @default.
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- W2075977330 doi "https://doi.org/10.1016/0164-0704(79)90019-3" @default.
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