On dynamic stability in monetary models which incorporate short- and long-run expectations of inflation in the demand for the money function
| Publication date | 1979 |
| Original language | English |
Abstract
The demand for money function should depend on the long-run rate of inflation. A model of macroeconomic fluctuations based on short-run unanticipated inflation is used, together with adaptive expectations to develop conditions for price stability. It is shown that Cagan's conditions are neither necessary nor efficient
