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Une théorie de l'inflation optimale fondée sur les contraintes de crédit

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  • Xavier Ragot

Abstract

This paper explores the relationship between credit constraints and inflation. It is shown that a small positive inflation can alleviate credit constraints and that this effect can justify a positive long run inflation target for central banks without any assumption concerning nominal rigidities. In a standard non-ricardian setting, which is an overlapping generation framework, I prove that monetary authorities can induce the optimal level of the real interest rate and hence the optimal level of production thanks to a positive long run inflation rate. Classification JEL : E52, E31, E43

Suggested Citation

  • Xavier Ragot, 2004. "Une théorie de l'inflation optimale fondée sur les contraintes de crédit," Revue économique, Presses de Sciences-Po, vol. 55(3), pages 469-478.
  • Handle: RePEc:cai:recosp:reco_553_0469
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    References listed on IDEAS

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    1. Burke, Jonathan L., 1990. "A benchmark for comparative dynamics and determinacy in overlapping-generations economies," Journal of Economic Theory, Elsevier, pages 268-303.
    2. Blanchard, Olivier J, 1985. "Debt, Deficits, and Finite Horizons," Journal of Political Economy, University of Chicago Press, pages 223-247.
    3. Blanchard, Olivier J, 1985. "Debt, Deficits, and Finite Horizons," Journal of Political Economy, University of Chicago Press, pages 223-247.
    4. Jorge Durán, 2003. "Discounting long run average growth in stochastic dynamic programs," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 22(2), pages 395-413, September.
    5. Rebelo, Sergio, 1991. "Long-Run Policy Analysis and Long-Run Growth," Journal of Political Economy, University of Chicago Press, pages 500-521.
    6. Kehoe, Timothy J. & Levine, David K. & Mas-Colell, Andreu & Woodford, Michael, 1991. "Gross substitutability in large-square economies," Journal of Economic Theory, Elsevier, pages 1-25.
    7. Boucekkine, Raouf & de la Croix, David & Licandro, Omar, 2002. "Vintage Human Capital, Demographic Trends, and Endogenous Growth," Journal of Economic Theory, Elsevier, pages 340-375.
    8. Raouf Boucekkine & David de la Croix & Omar Licandro, "undated". "vintage human capital, demographic trends and endogenous growth," Working Papers 2000-02, FEDEA.
    9. Azariadis, Costas & Bullard, James & Ohanian, Lee, 2004. "Trend-reverting fluctuations in the life-cycle model," Journal of Economic Theory, Elsevier, pages 334-356.
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    11. Weil, Philippe, 1989. "Overlapping families of infinitely-lived agents," Journal of Public Economics, Elsevier, pages 183-198.
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    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects

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