A Note on Local Stability Conditions for Two Types of Monetary Models with Recursive Utility

摘要: This note explores local stability conditions for money‐in‐utility‐function (MIUF) and transaction‐costs (TC) models with recursive utility. Although Chen et al. [Chen, B.‐L., M. Hsu, C.‐H. Lin, 2008, Inflation growth: impatience a qualitative equivalent, Journal of Money, Credit, Banking, Vol. 40, No. 6, 1310–1323] investigated the relationship between inflation growth in MIUF TC utility, they conducted only comparative static analysis steady state. By establishing sufficient stability, this proves that should be increasing consumption real balances. Increasing impatience, although less plausible from an empirical point view, receives more support theoretical viewpoint.