Silvio Gesell argued that ‘rusting’ money is economically and socially beneficial;that claim has often been contended. In Part II of the paper I concentrate on thelong-run implications of his ideas. I show that introducing money depreciationin isolation may be economically non-beneficial in...

Silvio Gesell hypothesized that money depreciation is economically and sociallybeneficial, ideas that have often been contended. Here I analyze that in a Sidrauskimodel in which households additionally have a ‘love of wealth’-motive. In thefirst part of this work these features provide the...

This paper offers a supply-side explanation of the variation in long-run growth and inequality across countries. In the model education simultaneously affects growth and income inequality. More human capital may increase or decrease growth but also measured inequality. In contrast to some recent...

In many OECD countries income inequality has risen, but surprisingly redistribution as well. The theory attributes this partly to the redistributive effect of education spending. In the model income inequality and growth depend in an inverted U-shaped way on education. To maintain a given level...

In this paper education simultaneously affects growth and income inequality. More education does not necessarily decrease inequality when the latter is assessed by the Lorenz dominance criterion. Increases in education first increase and then decrease growth as well as income inequality, when...

This paper analyzes the link between long-run economic growth and policy that depends on important economic fundamentals. In simple growth regressions the measured policy effects would then generally be biased. Using a widely quoted theoretical model, the signs of the biases are derived. It is...