Financial Deepening, Inflation and Economic Growth
We develop a general equilibrium framework to analyze the relationship between the operation of the financial system, inflation and economic growth. We first investigate the dynamic interactions between financial development and growth by analyzing how financial innovations affect real growth, and, in turn, growth affects the financial system. We then study how inflation affects financial deepening and economic growth. Finally, we discuss policy implications and derive optimal fiscal and monetary policies.
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- Aleksander Berentsen & Gabriele Camera & Christopher Waller, .
"Money, Credit and Banking,"
IEW - Working Papers
219, Institute for Empirical Research in Economics - University of Zurich.
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