MONEY IN A NEO-CLASSICAL ONE-SECTOR GROWTH MODEL*
The neo-classical one-sector growth model has become a standard piece of equipment in the economic theorist’s tool kit. Nevertheless, most of the available expositions of it are needlessly complicated and mathematical, and tend to obscure the simplicity of the central analytical propositions. Moreover, these expositions are for the most part confined to the case of a non-monetary economy. The purpose of this essay is to present a geometrical exposition of the one-sector growth model for the simplest possible case,1 and to apply it to the analysis of the role of money in such a model. ...
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