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. …

inflation and Tobin's q; a normalized market price of capital. This stylized fact is explained within a dynamic stochastic … rising marginal cost of investment, (ii) production of human capital with endogenous growth and (iii) an inflation tax cash …-in-advance economy. The baseline endogenous growth model matches the US inflation and q long term correlation, while comparable exogenous …