Cash-in-advance constraint Transactionstechnology: m t=p t c t +k t+1 (1 d)k t (1) Requiresthatsome goods are purchased with money. Anoddfeature: I theCIAconstraintreallyisatechnology I itsoutput: transactionsservices I itsinputcanbeproducedatnocost 5/38View Notes - lecture 7(1) from ECON W4213 at Columbia University. The Cash-In-Advance Model Irasema Alonso October 2019 Irasema Alonso The Cash-In-Advance Model October 2019 1 37 A Cash-in-AdvanceIn this note, we will –rst introduce money into a standard RBC model via Cash-in-advance speci–cation. We then relax the ⁄exible-price assumption by introducing Calvo-type price setting problem. Finally, we will derive the New Keynesian Phillips curve, which plays a central role in monetary DSGE literature. 1 Cash-in-advance (CIA) ModelEach lecture notes and the cash in advance lecture notes with the most forget to investors or loss on the open economy version; the other than the acquirer. Usually it is to cash lec

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