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Inflation, Financial Development and Endogenous Growth Author info | Abstract | Publisher info | Download info | Related research | Statistics Max Gillman
Mark N. Harris ()
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The paper extends the literature on financial development, inflation, and growth by using the idea that both the rates of return on physical and human capital affect growth. This leads to the introduction of the investment rate into the model, as a proxy for the return to physical capital, along with the inflation rate as a variable affecting the return to human capital. As a result financial development plays a different role from the typical growth-enhancing effect found pervasively in the literature. Instead the results suggest a new hypothesis linking financial development to the nature of the effect of inflation on growth.
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Paper provided by Monash University, Department of Econometrics and Business Statistics in its series Monash Econometrics and Business Statistics Working Papers with number
24/04.
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Length: 25 pages
Date of creation: Nov 2004Date of revision:
Handle: RePEc:msh:ebswps:2004-24Contact details of provider: Postal: PO Box 11E, Monash University, Victoria 3800, Australia Phone: +61-3-9905-2489 Fax: +61-3-9905-5474 Email: Web page: http://www.buseco.monash.edu.au/depts/ebs/ More information through EDIRC
Order Information: Email: Web: http://www.buseco.monash.edu.au/depts/ebs/pubs/wpapers/
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Keywords: Investment rate return on capital panel data fixed effects Other versions of this item:
Find related papers by JEL classification: C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment O42 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Monetary Growth Models
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"Inflation and growth: Explaining a negative effect ,"
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Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Benk, Szilárd & Gillman, Max & Kejak, Michal, 2005.
"A Comparison of Exchange Economies within a Monetary Business Cycle ,"
Cardiff Economics Working Papers
E2005/14, Cardiff University, Cardiff Business School, Economics Section.
[Downloadable!]
Other versions: Max Gillman & Mark N Harris & Michal Kejak, 2007.
"The Interaction of Inflation and Financial Development with Endogenous Growth ,"
Money Macro and Finance (MMF) Research Group Conference 2006
29, Money Macro and Finance Research Group.
[Downloadable!]
Max Gillman & Mark N. Harris, 2004.
"Inflation, Financial Development and Growth in Transition Countries ,"
Monash Econometrics and Business Statistics Working Papers
23/04, Monash University, Department of Econometrics and Business Statistics.
[Downloadable!]
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