Year: 1986
Author: Allsbrook, Odgen O.
Credit and Capital Markets – Kredit und Kapital, Vol. 19 (1986), Iss. 2 : pp. 248–251
Abstract
Rational Expectations and Crowding-Out
This paper reorders the IS – LM geometry to include rational expectations. When monetary policy is then applied, the effect is one of crowding-out. Hence, the assumptions of rational expectations, expansionary monetary policy, and reduced demand for real balances leads to reduced saving and investment ratios and an increased consumption ratio. It is thus the case that non-neutrality of money in a distributional or compositional sense exists.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/ccm.19.2.248
Credit and Capital Markets – Kredit und Kapital, Vol. 19 (1986), Iss. 2 : pp. 248–251
Published online: 1986-02
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 4
Author Details
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