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On money and capital with durable goods

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  • Mansoorian, Arman
  • Michelis, Leo

Abstract

If expenditures on non-durables are more heavily financed with money than expenditures on durables then after an increase in the inflation rate there will be capital deccumulation followed by capital accumulation. Money is superneutral in the long run.

Suggested Citation

  • Mansoorian, Arman & Michelis, Leo, 2010. "On money and capital with durable goods," Economics Letters, Elsevier, vol. 107(1), pages 36-38, April.
    • Handle: RePEc:eee:ecolet:v:107:y:2010:i:1:p:36-38
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    References listed on IDEAS

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    Keywords

    Inflation Money Durables Capital;

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