Money and Growth under Uncertainty.
HARVARD UNIV CAMBRIDGE MASS
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The paper discusses the welfare implications of monetary policy in a general equilibrium neoclassical growth framework. Conditions are discussed in which individuals face uncertainty in their own production processes and therefore have a portfolio demand for money as a safe asset. When individuals cannot trade risks, a Pareto efficient allocation is described which may still be approximated by government action which creates money and sets up a suitable taxsubsidy policy. Author
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