Output growth, investment and the real interest rate are all found empirically to be negatively affected by inflation …. But a seeming puzzle arises of opposite Tobin-like inflation effects because theory indicates a negative Tobin effect when … investment falls and a positive Tobin effect when the real interest rate rises. We define inflation's Tobin effect more …

I study the effect of the trending relative price of investment on the optimal target rate of inflation. The price of … of investment goods. The resulting optimal target rate of inflation is significantly positive with a median of 1 … investment has a decreasing trend relative to that of consumption because of investment-specific technological progress. If the …

delay in the response of the rate of inflation to a monetary shock. This paper shows that an optimizing monetary model with … endogenous capital, sticky prices, sticky wages, and adjustment costs of investment, can replicate a lag in the maximum response … of both output and inflation to an interest rate shock when taking into account a time-to-build requirement for …

Three ways of averting "excess saving" have been emphasized in both theory and practice. The thrust of the Keynesian … consumption or investment. In this way, aggregate demand would be maintained by substituting public consumption for private … JamesTobin, relies on increasing the rate of inflation and making money less attractive relative to real capital. In Tobin …