The Inflation Tax in a Real Business Cycle Model
University of Rochester; University of California, Los Angeles
Real business cycle model with indivisible labor and employment lotteries, augmented with money via cash-in-advance constraint on consumption; technology shocks drive fluctuations; money supply follows constant or autoregressive growth rate rul
constant returns to scale technology with Cobb-Douglas production function
Table 2 p.743
100 percent annual inflation steady state, quarterly constraint, g=1.19