Contrasting Models of the Effect of Inflation on Growth
24 Pages Posted: 5 Feb 2005
Abstract
The paper formulates a nesting model for studying the theoretical literature on inflation and endogenous growth. It analyses different classes of endogenous growth models, with different usage of physical and human capital, with different exchange technologies. First, the paper shows that a broad array of models can all generate significant negative effects of inflation on growth. Second, it shows that these models can be differentiated primarily by the fact whether there is a Tobin-type effect of inflation and also whether the inflation-growth effect becomes weaker as the inflation rate rises, a non-linearity, or stays essentially constant over the range of inflation rates. The paper compares these features of the models to empirical evidence as a way to summarize the efficacy of the models.
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
Inflation and the Great Ratios: Long-Term Evidence from the U.S.
By Shaghil Ahmed and John H. Rogers
-
Dynamic Behavior of Capital Accumulation in a Cash-in-Advance Model
-
Optimal Monetary Policy and Economic Growth
By Joydeep Bhattacharya, Joseph Haslag, ...
-
The Demand for Bank Reserves and Other Monetary Aggregates
By Max Gillman and Michal Kejak
-
By Max Gillman and Anton Nakov
-
Price Liberalization, Money Growth, and Inflation During the Transition to a Market Economy
-
Granger Causality of the Inflation - Growth Mirror in Accession Countries
By Max Gillman and Anton Nakov
-
Granger Causality of the Inflation-Growth Mirror in Accession Countries
By Max Gillman and Anton Nakov
-
Inflation and Growth: Some Theory and Evidence
By Max Gillman, Mark N. Harris, ...
Contrasting Models of the Effect of Inflation on Growth
This is a Wiley-Blackwell Publishing paper. Wiley-Blackwell Publishing charges $42.00 .
File name: joes.pdf
Size: 196K
If you wish to purchase the right to make copies of this paper for distribution to others, please select the quantity.
