A Multi-country Monetary Economic Growth Model with International Trade and National Monetary Policies
This paper proposes a multi-country monetary growth model with capital accumulation. The real aspects of the model are based on the neo-classical growth theory. Money is introduced via the cash-in-advance (CIA) approach. We show that the dynamics of the J-country world economy can be described by 2J-dimensional differential equations. We also simulate equilibrium and motion of the global economy with three countries and Cobb-Douglas production functions. We demonstrate effects of changes in technology and inflation policy. For instance, our simulation demonstrates that as the developed economy improves its technology, its total output, product per worker and wage are increased over time; the corresponding variables of the other two economies are reduced. We also try to provide some possible implications of our model for the recent economic crisis.
Volume (Year): 39 (2010)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/RGER20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RGER20|
When requesting a correction, please mention this item's handle: RePEc:taf:glecrv:v:39:y:2010:i:1:p:43-58. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.