Money, Inflation and Growth
- 서울대학교 경제연구소
- Seoul Journal of Economics
- Seoul Journal of Economics Volume 9 No.2
-
1996.06145 - 161 (16 pages)
- 4
Money is introduced into an endogenous growth model in which exchange requires cash-in-advance. We show that the decentralized competitive outcome is an inefficient balanced growth equilibrium in which money affects growth through two independent channels: externality in production and private transactions cost in exchange. We compute the growth (and welfare) maximizing monetary policy which trades off these two effects. We also show that, in the absence of the externality, efficiency is restorable by means of a well-known optimum money supply rule.
Abstract
Ⅰ. Introduction
Ⅱ. An Endogenous Growth Model with Cash-in-advance Constraint
Ⅲ. Balanced Growth Equilibrium
Ⅳ. Monetary Transfer in an Endogenous Growth Model
Ⅴ. Money Finance in an Endogenous Growth Model
Ⅵ. Effects of Inflation with the Public Externality
Ⅶ. Conclusions
References
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