A Non-Linearity in the Inflation-Growth Effect - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook A Non-Linearity in the Inflation-Growth Effect write by Max Gillman. This book was released on 2001. A Non-Linearity in the Inflation-Growth Effect available in PDF, EPUB and Kindle. The paper shows how increases in the inflation rate can cause the output growth rate to decrease by a lessor amount as the inflation rate rises. This is the so-called non-linearity in the inflation-growth effect. Our explanation helps show how model-based estimates of the inflation-growth effect can be consistent with evidence. The model includes an explicit credit service sector that allows avoidance of the inflation tax and that induces and increasingly interest elasticity of money demand. The increased use of credit as the inflation rate rises, and the increase elasticity of substitution between money and credit, means the agent relies increasingly less on leisure to avoid the inflation tax. This lessens the negative effect of inflation on endogenous growth at higher rates of inflation. We present both a closed form solution to develop the intuition and a set of calibrations of the baseline model, of more standard case-only, and cash good/credit good models, and of the baseline extended to included physical capital. The paper also shows how the economy is a special case of the shopping time exchange model. The added micro-foundations allow in addition calibrations of how financial development affects the non-linearity and the magnitude of the inflation-growth effect.
Nonlinear Effects of Inflationon Economic Growth
Nonlinear Effects of Inflationon Economic Growth - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Nonlinear Effects of Inflationon Economic Growth write by Mr.Michael Sarel. This book was released on 1995-06-01. Nonlinear Effects of Inflationon Economic Growth available in PDF, EPUB and Kindle. This paper examines the possibility of nonlinear effects of inflation on economic growth. It finds evidence of a significant structural break in the function that relates economic growth to inflation. The break is estimated to occur when the inflation rate is 8 percent. Below that rate, inflation does not have any effect on growth, or it may even have a slightly positive effect. When the inflation rate is above 8 percent, however, the estimated effect of inflation on growth rates is significant, robust and extremely powerful. The paper also demonstrates that when the existence of the structural break is ignored, the estimated effect of inflation on growth is biased by a factor of three.
Non-linearity in the Inflation-Growth Relationship in Developing Economies
Non-linearity in the Inflation-Growth Relationship in Developing Economies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Non-linearity in the Inflation-Growth Relationship in Developing Economies write by Deniz Baglan. This book was released on 2014. Non-linearity in the Inflation-Growth Relationship in Developing Economies available in PDF, EPUB and Kindle.
Nonlinear Effects of Inflation on Economic Growth
Nonlinear Effects of Inflation on Economic Growth - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Nonlinear Effects of Inflation on Economic Growth write by Michael Sarel. This book was released on 2006. Nonlinear Effects of Inflation on Economic Growth available in PDF, EPUB and Kindle. This paper examines the possibility of nonlinear effects of inflation on economic growth. It finds evidence of a significant structural break in the function that relates economic growth to inflation. The break is estimated to occur when the inflation rate is 8 percent. Below that rate, inflation does not have any effect on growth, or it may even have a slightly positive effect. When the inflation rate is above 8 percent, however, the estimated effect of inflation on growth rates is significant, robust and extremely powerful. The paper also demonstrates that when the existence of the structural break is ignored, the estimated effect of inflation on growth is biased by a factor of three.
Inflation Theory in Economics
Inflation Theory in Economics - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Inflation Theory in Economics write by Max Gillman. This book was released on 2009-03-23. Inflation Theory in Economics available in PDF, EPUB and Kindle. These essays bring together a progression in monetary theory. The major theme that runs through all of the chapters is that in order to do monetary economics well in general equilibrium, it helps to have a good money demand underlying the theory. A proper underlying money demand sets up arguably the best foundation from which to make extensions of monetary economics from the basic model. At the same time that money demand is modelled, this also “endogenizes” the velocity of money. This has been a challenge in the literature that these essays solve and then use to extend basic neoclassical growth and business cycle theory. Solving this problem, in a way that is a natural, direct, and “micro-founded” extension of the standard monetary theory is the first major contribution of the collection. The second major contribution is the extension of the neoclassical monetary models, using this solution, to reinvigorate classic issues of monetary economics and take them to the frontier.
