IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

'Soft' growth and the role of monetary policy in selecting the long-run equilibrium path

  • Luigi Bonatti

    ()

    (Department of Economics, University of Bergamo)

Registered author(s):

    Combining employment and growth theory with a cash-in-advance constraint, the model determines the balanced growth path (BGP). Under low intertemporal elasticity of substitution in consumption, the Friedman rule is consistent with the existence of an unique BGP: monetary rules leading to a steady-state rate of money expansion higher than that dictated by the Friedman rule lower balanced growth. Under high elasticity, the Friedman rule is consistent with multiple BGP: the authority can "select" the BGP exhibiting the highest growth rate by expanding money at the appropriate fixed rate, since balanced growth rises with the fixed rate of money expansion.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://aisberg.unibg.it/bitstream/10446/179/1/WPEco06(2003)Bonatti.pdf
    File Function: Version, 2003
    Download Restriction: no

    Paper provided by University of Bergamo, Department of Economics in its series Working Papers (-2012) with number 0306.

    as
    in new window

    Length: 50 pages
    Date of creation: 2003
    Date of revision:
    Handle: RePEc:brg:wpaper:0306
    Contact details of provider: Postal: via dei Caniana, 2 - 24127 BERGAMO
    Phone: 0039 035 2052111
    Web page: http://www.unibg.it/struttura/en_struttura.asp?cerca=en_dse_intro
    Email:


    More information through EDIRC

    References listed on IDEAS
    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.:

    as in new window
    1. Hall, Robert E, 1988. "Intertemporal Substitution in Consumption," Journal of Political Economy, University of Chicago Press, vol. 96(2), pages 339-57, April.
    2. Acemoglu, Daron, 1996. "A Microfoundation for Social Increasing Returns in Human Capital Accumulation," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 779-804, August.
    3. Andrew B. Abel, 1985. "Dynamic Behavior of Capital Accumulation in a Cash-in-Advance Model," NBER Working Papers 1549, National Bureau of Economic Research, Inc.
    4. Haskel, Jonathan & Martin, Christopher, 1993. "Skill Shortages, Productivity Growth and Wage Inflation in UK Manufacturing," CEPR Discussion Papers 859, C.E.P.R. Discussion Papers.
    5. Palivos, Theodore & Yip, Chong K, 1995. "Government Expenditure Financing in an Endogenous Growth Model: A Comparison," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 27(4), pages 1159-78, November.
    6. Soskice, David, 1990. "Wage Determination: The Changing Role of Institutions in Advanced Industrialized Countries," Oxford Review of Economic Policy, Oxford University Press, vol. 6(4), pages 36-61, Winter.
    7. Arulampalam, Wiji & Booth, Alison L, 1996. "Who Gets Over the Training Hurdle? A Study of the Training Experiences of Young Men and Women in Britain," CEPR Discussion Papers 1470, C.E.P.R. Discussion Papers.
    8. Wang, P. & Yip, C.K., 1991. "Examining the Long-Run Effect of Money on Economic Growth," Papers 6-91-2, Pennsylvania State - Department of Economics.
    9. Gomme, Paul, 1993. "Money and growth revisited : Measuring the costs of inflation in an endogenous growth model," Journal of Monetary Economics, Elsevier, vol. 32(1), pages 51-77, August.
    10. van der Ploeg, Frederick & Alogoskoufis, George S, 1994. "Money and Endogenous Growth," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 26(4), pages 771-91, November.
    11. Gylfason, T., 1991. "Endogenous Growth and Inflation," Papers 502, Stockholm - International Economic Studies.
    12. Andrea Bassanini & Stefano Scarpetta & Ignazio Visco, 2000. "Knowledge, Technology and Economic Growth: Recent Evidence from OECD Countries," OECD Economics Department Working Papers 259, OECD Publishing.
    13. Snower, Dennis J., 1994. "The Low-Skill, Bad-Job Trap," CEPR Discussion Papers 999, C.E.P.R. Discussion Papers.
    14. David G. Blanchflower & Andrew J. Oswald, 1989. "The Wage Curve," NBER Working Papers 3181, National Bureau of Economic Research, Inc.
      • Blanchflower, D. & Oswald, A., 1989. "The Wage Curve," Papers 340, London School of Economics - Centre for Labour Economics.
    15. Frank Hahn & Robert Solow, 1997. "A Critical Essay on Modern Macroeconomic Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 026258154x, June.
    16. Jones, Larry E. & Manuelli, Rodolfo E., 1995. "Growth and the effects of inflation," Journal of Economic Dynamics and Control, Elsevier, vol. 19(8), pages 1405-1428, November.
    17. Sailesh K. Jha & Ping Wang & Chong K.Yip, 2000. "Dynamics in a Transactions-Based Monetary Growth Model," Vanderbilt University Department of Economics Working Papers 0005, Vanderbilt University Department of Economics.
    18. Benhabib, Jess & Farmer, Roger E.A., 1999. "Indeterminacy and sunspots in macroeconomics," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 6, pages 387-448 Elsevier.
    19. Mino, Kazuo & Shibata, Akihisa, 1995. "Monetary Policy, Overlapping Generations, and Patterns of Growth," Economica, London School of Economics and Political Science, vol. 62(246), pages 179-94, May.
    20. Brunello, Giorgio, 2001. "On the Complementarity between Education and Training in Europe," IZA Discussion Papers 309, Institute for the Study of Labor (IZA).
    21. Stockman, Alan C., 1981. "Anticipated inflation and the capital stock in a cash in-advance economy," Journal of Monetary Economics, Elsevier, vol. 8(3), pages 387-393.
    22. J. Bradford DeLong & Lawrence H. Summers, 1992. "Equipment Investment and Economic Growth: How Strong Is the Nexus?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(2), pages 157-212.
    23. Chang, Wen-ya & Lai, Ching-chong, 2000. "Anticipated Inflation in a Monetary Economy with Endogenous Growth," Economica, London School of Economics and Political Science, vol. 67(267), pages 399-417, August.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:brg:wpaper:0306. 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: (University of Bergamo Library)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.