We study the implications of constant money growth rules on the stability properties of the equilibrium, in economies where agents are subject to a partial cash-in-advance constraint applying simultaneously to consumption and investment purchases. By reference to similar models in which the liquidity constraint applies only to consumption, we show that the inclusion of investment has dramatic, ...

Some macroeconomic models exhibit a type of global indeterminacy known as Euler equation branching (e.g., the one-sector growth model with a production externality). The dynamics in such models are governed by a differential inclusion ẋ ∈ F (x), where F is a set-valued function. In this paper, we show that in models with Euler equation branching there are multiple equilibria and that the dynami...

Quine and Davidson employ proxy functions to demonstrate that the use of language (behaviouristically conceived) is compatible with indefinitely many radically different reference relations. They also believe that the use of language (behaviouristically conceived) is all that determines reference. From this they infer that reference is indeterminate, i.e. that there are no facts of the matter a...

We incorporate a renewable resource into an overlapping generations model with standard, well-behaved utility and constant returns production functions. Besides being a factor of production the resource serves as a store of value. We characterize dynamics, efficiency and stability of steady state equilibria, and show that their nature depends on the size of the intertemporal elasticity of subst...

This paper develops a general equilibrium model with the banking system and the reserves market, where the central bank a¤ects the federal funds rate through open market operations. We show that when the coe¢ cient that measures the response of the federal funds rate to the in‡ation rate falls below a threshold value, which is very small, the economy will have two steady states, where the low-e...