Working Paper

Nonsuperneutrality of Money in the Sidrauski Model with Heterogeous Agents

Burkhard Heer
CESifo, Munich, 2003

CESifo Working Paper No. 1005

Superneutrality is demonstrated to no longer hold in the Sidrauski model as soon as agents are heterogenous with regard to their productivity. However, quantitative effects of inflation on the capital stock are found to be rather small.

Keywords: superneutrality, Sidrauski model, income heterogeneity