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- W2260480628 abstract "Using a model where a cash-in-advance constraint is imposed on both consumption and investment and the central bank is compelled to finance a fiscal deficit through money creation, this paper shows that there are two or three steady states. If two steady states exist, a high-inflation trap can appear, and an economy will most probably converge to a high-inflation steady state. If three steady states exist, a poverty trap can occur, and an economy where the initial capital stock is less than a threshold level reaches a high-inflation and low-capital steady state." @default.
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- W2260480628 date "2010-01-01" @default.
- W2260480628 modified "2023-09-26" @default.
- W2260480628 title "Inflation, Fiscal Deficits, and Multiple Steady States in a Cash-in-Advance Model" @default.
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- W2260480628 doi "https://doi.org/10.2139/ssrn.1692622" @default.
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