INSIDE MONEY, OUTSIDE MONEY, AND OUTPUT
1994 年 45 巻 2 号 p. 141-158
詳細
1994 年 45 巻 2 号 p. 141-158
Understanding what accounts for the relationship between monetary measures and the output of the economy is one of the basic issues of macroeconomics. It has been argued that there exists a positive relationship between money and output. However, in most general equilibrium models, money is neutral in the sense that monetary measures affect price levels but not output (in the long-run or when it is expected). Money in those models is outside money. King and Plosser (1984), however, found that the correlation between money and output is primarily with inside money. In this paper, as the first step in the study to investigate the relationship between monetary measures and output, a rigorous general equilibrium model in which inside money and outside money coexist is constructed. The dependence of the steady-state value of inside money and output on parameters which describe the environment of the economy is also studied.
