9.16. Growth and seignorage, and an alternative explanation of the inflation- growth relationship. (Friedman, 1971.) Suppose that

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9.16. Growth and seignorage, and an alternative explanation of the inflation- growth relationship. (Friedman, 1971.) Suppose that money demand is given by In(M/P) abi +In Y, and that Y is growing at rate gy. What rate of inflation leads to the highest path of seignorage?

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