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On Some Monetarist Arithmetic

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  • M J Manohar Rao

Abstract

The paper improves upon the original Sargent-Wallace (SW) version which had to resort to numerical simulations to prove this point It is also shown that incorporating the Mundeil-Tobin and Darby-Tanzi effects into the model indicates further conditions that would (in)validate the SW result

Suggested Citation

  • M J Manohar Rao, 2010. "On Some Monetarist Arithmetic," Working Papers id:3027, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:3027
    Note: Institutional Papers
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    References listed on IDEAS

    as
    1. Thomas J. Sargent & Neil Wallace, 1984. "Some Unpleasant Monetarist Arithmetic," Palgrave Macmillan Books, in: Brian Griffiths & Geoffrey E. Wood (ed.), Monetarism in the United Kingdom, pages 15-41, Palgrave Macmillan.
    2. Darby, Michael R, 1975. "The Financial and Tax Effects of Monetary Policy on Interest Rates," Economic Inquiry, Western Economic Association International, vol. 13(2), pages 266-276, June.
    3. Robert Mundell, 1963. "Inflation and Real Interest," Journal of Political Economy, University of Chicago Press, vol. 71(3), pages 280-280.
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    More about this item

    Keywords

    sargent wallace; SW; Darby-Tanzi; validate; effects; numerical; simulations; steady-state inflation; monetary accommodation; debt-financing; monetarist; arithmetic;
    All these keywords.

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