This paper characterizes the monetary equilibria of an economy with commodity and labour contracts. If government policy is not “too variable,” there may exist an equilibrium with predetermined wages and prices. In this equilibrium, observed changes in the money supply to finance government purchases have persistent real effects. The paper also provides theoretical support for an inverse relationship between the degree of indexation in contracts and the persistence of policy effects.

Journal Article Rate of Growth Effects on Aggregate Savings: Further Analysis Get access Thomas Russell Thomas Russell University of Rochester Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 44, Issue 1, February 1977, Pages 153–168, https://doi.org/10.2307/2296979 Published: 01 February 1977 Article history Received: 01 November 1974 Accepted: 01 December 1975 Published: 01 February 1977

Cowell has shown that if an inequality measure satisfies (1) additivity, (2) decomposability (among population groups), (3) additivitiy of the group inequality measures, (4) symmetry within groups, and (5) twice differentiability, it can be written as an additive function of group measures belonging to the CES class or of the form ∑i, si, ln si, where si is the i-th person's share. Using a result from the theory of functional equations, I prove that the first two conditions, often imposed for analytical convenience, alone imply Cowell's structure. Symmetry, or other ethical postulates, can then be represented by simple parametric restrictions.

Journal Article Functional Separability and Partial Elasticities of Substitution Get access R. Robert Russell R. Robert Russell University of California, San Diego Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 42, Issue 1, January 1975, Pages 79–85, https://doi.org/10.2307/2296821 Published: 01 January 1975

Three Economic Systems Clash in Burma J. Russell Andrus J. Russell Andrus Judson College, Rangoon Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 3, Issue 2, February 1936, Pages 140–146, https://doi.org/10.2307/2967505 Published: 01 February 1936

Charles Blackorby, R. Robert Russell; The Morishima Elasticity of Substitution; Symmetry, Constancy, Separability, and its Relationship to the Hicks and Al

Charles Blackorby, R. Robert Russell; Functional Structure and the Allen Partial Elasticities of Substitution: An Application of Duality Theory, The Review of E

William R. Russell, Tae Kun Seo; Diversification Theorems for Subsets of Risk Averters, The Review of Economic Studies, Volume 46, Issue 3, 1 July 1979, Pages 5

William R. Russell, Tae Kun Seo; Ordering Uncertain Prospects: The Multivariate Utility Functions Case, The Review of Economic Studies, Volume 45, Issue 3,

Central to ongoing debates over the desirability of monetary unions is a supposed trade-off, outlined by Mundell (1961): a monetary union reduces transactions costs but renders stabilization policy less effective. If shocks across countries are sufficiently correlated, then, according to this argument, delegating monetary policy to a single central bank is not very costly and a monetary union is desirable. This paper explores this argument in a setting with both monetary and fiscal policies. In an economy with monetary policy alone, we confirm the presence of the trade-off and find that indeed a monetary union will not be welfare improving if the correlation of national shocks is too low. However, fiscal interventions by national governments, combined with a central bank that has the ability to commit to monetary policy, overturn these results. In equilibrium, such a monetary union will be welfare improving for any correlation of shocks.