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grow faster than small firms under higher inflation. We then construct a model that introduces nominal rigidity into R …
Persistent link: https://www.econbiz.de/10012831527
with inflation targeting, characterized by relocation shocks for young agents, which in turn generates a role for money … productive in our model, a higher inflation-target would translate into higher growth, but under multiple equilibria, this is not …
Persistent link: https://www.econbiz.de/10012237479
inflation in order to stabilize the expectations of households, firms and innovators. Endogenous growth provides a self … debt-stabilizing inflation when current fiscal deficits are not backed by future fiscal surpluses. Because growth creates … unique stable equilibrium, provided that the policy permits r−g to fall with inflation. …
Persistent link: https://www.econbiz.de/10014457581
liquidity shocks are present due to interlocation interactions is adopted to have financial intermediaries arise endogenously …. We show that the relation between growth and inflation, as well as the existence and uniqueness of the balanced growth …
Persistent link: https://www.econbiz.de/10014048886
This paper studies the relation between money supply and the long-run economic growth in the context of an endogenous growth model with overlapping generations. We present detailed analyses of growth and welfare effects of monetary expansion under alternative money supply rules. It is shown...
Persistent link: https://www.econbiz.de/10014149097
We introduce endogenous growth in an otherwise standard NK model with staggered prices and wages. Some results follow: (i) monetary volatility negatively affects long-run growth; (ii) the relation between nominal volatility and growth depends on the persistence of the nominal shocks and on the...
Persistent link: https://www.econbiz.de/10010343890
. Since inflation in our model is driven by distribution conflict, the "normal rate" of utilisation is associated with … consistent claims of firms and employees. Taking into account real debt effects of changes in inflation and distribution effects … Inflation in unserem Modell durch Verteilungskonflikte verursacht wird, ist der normale Auslastungsgrad durch miteinander …
Persistent link: https://www.econbiz.de/10003744529
This paper studies fiscal policy in a New Keynesian DSGE model with endogenous technology growth in which scarring can occur endogenously through hysteresis effects in TFP. Both demand- and supply-driven recessions can weaken investment in R&D and technology adoption, thus depressing the...
Persistent link: https://www.econbiz.de/10013463787
monetary policy sets inflation above target whenever the subsidies fall short of the externalities. In the recovery from a … spell at the ZLB, the optimal discretionary policy sets inflation temporarily above target, helping mitigate the long …-run damage. Following a cost-push shock that creates inflationary pressure, the central bank tolerates a larger rise in inflation …
Persistent link: https://www.econbiz.de/10013293222
. But a seeming puzzle arises of opposite Tobin-like inflation effects because theory indicates a negative Tobin effect when …Output growth, investment and the real interest rate are all found empirically to be negatively affected by inflation … investment falls and a positive Tobin effect when the real interest rate rises. We define inflation's Tobin effect more …
Persistent link: https://www.econbiz.de/10003739611