Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Endogenous Growth and Inflation
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
1991 (English)Report (Other academic)
Abstract [en]

A simple model of the simultaneous determination and interaction of inflation and economic growth is constructed by incorporating money into an optimal growth framework with constant returns to capital. Various channels through which increased inflation tends to reduce growth and declining growth tends to amplify inflation are discussed. Special attention is paid to the potential effects of inflation (a) on saving through real interest rates (or uncertainty), (b) on the income velocity of money, and (c) on the government budget deficit through the inflation tax and tax erosion. Numerical analysis of the model indicates that, although a wide variety of outcomes is possible, inflation and growth tend to be negatively correlated for reasonable values and constellations of the structural parameters of the model, and to vary inversely with one another in response to changes in individual parameters. In particular, budget deficits financed by monetary expansion tend to reduce growth in the long run through their interplay with inflation, saving behavior, portfolio choice, and taxes.

Place, publisher, year, edition, pages
Stockholm: IIES , 1991. , 35 p.
Series
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 502
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-41812OAI: oai:DiVA.org:su-41812DiVA: diva2:337809
Available from: 2010-08-09 Created: 2010-08-09 Last updated: 2010-08-09Bibliographically approved

Open Access in DiVA

fulltext(5691 kB)183 downloads
File information
File name FULLTEXT01.pdfFile size 5691 kBChecksum SHA-512
ac789610f51b0f0d31736d83b0715b886812225ae554c6081a2723bfe2254e3b5c924e6420869c683f31ded259523f5c535316cb6bace31614f83c628c66806c
Type fulltextMimetype application/pdf

By organisation
Institute for International Economic Studies
Economics

Search outside of DiVA

GoogleGoogle Scholar
Total: 183 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 88 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf