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Further Theoretical and Empirical Evidence on Money to Growth Relation

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  • Alexandru Minea
  • Christophe Rault
  • Patrick Villieu

Abstract

This paper proposes a theoretical growth model where seigniorage can be used to finance productive public spending, and show the existence of nonlinear effects between seigniorage and economic growth. Empirical evidence based on panel regression techniques provides some support for these nonlinear effects on a sample of OECD countries over the 1978-2005 period.

Suggested Citation

  • Alexandru Minea & Christophe Rault & Patrick Villieu, 2008. "Further Theoretical and Empirical Evidence on Money to Growth Relation," William Davidson Institute Working Papers Series wp909, William Davidson Institute at the University of Michigan.
    • Handle: RePEc:wdi:papers:2008-909
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    File URL: http://deepblue.lib.umich.edu/bitstream/2027.42/64352/1/wp909.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    economic growth; nonlinear effects of monetary policy;

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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