Imperfect Information, Money, and Economic Growth

JOURNAL OF MONEY, CREDIT, AND BANKING, Vol. 28, No. 4, Part 1, November 1996

Posted: 16 Sep 1996

See all articles by Wai-Ming Ho

Wai-Ming Ho

York University - Department of Economics

Abstract

This paper develops an endogenous growth model with financial market imperfections to study the effects of money on economic growth and to examine the role of informational imperfections in the determination of the equilibrium growth path. The findings are summarized as follows. First, economic growth is slower when there is imperfect information. Second, changes in money growth have qualitatively similar effects on economies with and without private information. Third, contrary to the popular view that informational imperfections in credit markets or borrowing constraints tend to amplify the impact of policy interventions, economies with private information are less responsive to changes in monetary policy.

JEL Classification: E40

Suggested Citation

Ho, Wai-Ming, Imperfect Information, Money, and Economic Growth. JOURNAL OF MONEY, CREDIT, AND BANKING, Vol. 28, No. 4, Part 1, November 1996, Available at SSRN: https://ssrn.com/abstract=3323

Wai-Ming Ho (Contact Author)

York University - Department of Economics ( email )

4700 Keele St.
Faculty of Arts
Toronto, Ontario M3J 1P3
Canada
(416) 736-2100 ext.22319 (Phone)
(416) 736-5987 (Fax)

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