Velocity and Monetary Expansion in a Growing Economy with Interest-Rate Control
AbstractWe analyze the income velocity of money in an endogenous growth model with an interest-rate control rule and a cash-in-advance (CIA) constraint. We show that the long-term relationship between the income velocity of money and the nominal growth rate of money supply depends not only on the form of the CIA constraint but also on the central bankfs stance of interest-rate control rule.
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Bibliographic InfoPaper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 09-09.
Length: 14 pages
Date of creation: Mar 2009
Date of revision:
velocity; an interest-rate control; endogenous growth; cash-in-advance constraint;
Find related papers by JEL classification:
- O42 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Monetary Growth Models
- E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-04-05 (All new papers)
- NEP-CBA-2009-04-05 (Central Banking)
- NEP-DGE-2009-04-05 (Dynamic General Equilibrium)
- NEP-MAC-2009-04-05 (Macroeconomics)
- NEP-MON-2009-04-05 (Monetary Economics)
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