zbMATH — the first resource for mathematics

The dependence of the price level on the expansion of the money supply in closed economies. (English) Zbl 0849.90030
Diewert, W. Erwin (ed.) et al., Mathematical modelling in economics. Essays in honor of Wolfgang Eichhorn. Berlin: Springer-Verlag. 249-259 (1993).
Summary: The specialization of an economic model, created for open economies by Dornbusch in 1976, implies that a sudden expansion of the money supply makes the time path exponentially approach the higher steady-state level. This model was modified several times, but all modifications imply the typically exponential approach that does not fit empiric data. So we study models containing a time delay of the rate of inflation and get results which are more realistic.
For the entire collection see [Zbl 0840.00015].

91B62 Economic growth models
91B24 Microeconomic theory (price theory and economic markets)