A Multi-country Monetary Economic Growth Model with International Trade and National Monetary Policies
Wei-Bin Zhang ()
Global Economic Review, 2010, vol. 39, issue 1, 43-58
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.
Keywords: Monetary growth; trade pattern; capital accumulation; CIA approach; inflation policy (search for similar items in EconPapers)
References: Add references at CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:taf:glecrv:v:39:y:2010:i:1:p:43-58
Ordering information: This journal article can be ordered from
Access Statistics for this article
Global Economic Review is currently edited by Kap-Young Jeong and Taeyoon Sung
More articles in Global Economic Review from Taylor & Francis Journals
Series data maintained by Chris Longhurst ().