Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

Money in the Production Function : A New Keynesian DSGE Perspective

Abstract : This paper proposes a New Keynesian Dynamic Stochastic General Equilibrium (DSGE) model where real money balances enter the production function. By using a Bayesian analysis, our model shows that money is not an omitted input to the production process and rejects the decreasing returns to scale hypothesis. Our simulations suggest that money plays a negligible role in the dynamics of output and inflation, despite its inclusion in the production function. In addition, we introduce the flexible-price real money balances concept.
Document type :
Preprints, Working Papers, ...
Complete list of metadata

Cited literature [42 references]  Display  Hide  Download
Contributor : Michel Demoura Connect in order to contact the contributor
Submitted on : Thursday, February 28, 2013 - 1:42:55 PM
Last modification on : Tuesday, January 19, 2021 - 11:08:29 AM
Long-term archiving on: : Saturday, June 1, 2013 - 3:59:04 AM


Publisher files allowed on an open archive


  • HAL Id : hal-00795547, version 1



Jonathan Benchimol. Money in the Production Function : A New Keynesian DSGE Perspective. 2011. ⟨hal-00795547⟩



Record views


Files downloads