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- W3125119147 abstract "Abstract In the rational expectations analysis of Lucas and Barro, the quantity of money is subject to random shocks that are specified to be unanticipated and permanent in character. The present note provides some simple examples of alternative money supply specifications that lead to non-neutrality of perceived temporary monetary growth through the channel of expected inflation. Subsequently, the discussion demonstrates that this non-neutrality is not robust to an alternative specification of private monetary behavior, the permanent balance model. The key difference is that the initial model involves commodity supply and demand which depend on current real balances while in the subsequent model these depend on permanent balances. Some final remarks are directed to the idea that the distinction between current and permanent balances in this simple model could be linked to alternative roles of money in more detailed, optimizing analyses." @default.
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- W3125119147 date "1981-01-01" @default.
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- W3125119147 title "A note on the neutrality of temporary monetary disturbances" @default.
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- W3125119147 doi "https://doi.org/10.1016/0304-3932(81)90035-0" @default.
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