This paper examines the effect of inflation on real growth in a Solow growth model using data from a cross section of countries over a 30-year period. The advantage of using a theoretical model is that it reduces the risk that the results will reflect data-mining. The results suggest that the 5...

In this paper we examine the effectiveness in controlling long-run inflation of feedback rules for monetary policy that link changes in a short-term interest rate to an intermediate target for either nominal GDP or M2. We conclude that a rule aimed at controlling the growth rate of nominal GDP...

The recent "benign" combination of strong output growth and low inflation has led to speculation that the potential growth rate of real GDP has increased. This paper examines trends in labor supply to see whether this source of GDP growth might have accelerated. Discussions of labor supply often...