Money and growth revisited

Paul Gomme

No 55, Discussion Paper / Institute for Empirical Macroeconomics from Federal Reserve Bank of Minneapolis

Abstract: Results in Lucas (1987) suggest that if public policy can affect the growth rate of the economy, the welfare implications of alternative policies will be large. In this paper, a stochastic, dynamic general equilibrium model with endogenous growth and money is examined. In this setting, inflation lowers growth through its effect on the return to work. However, the welfare costs of higher inflation are modest.

Keywords: Monetary policy; Money supply; Business cycles (search for similar items in EconPapers)
Date: 1991
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Citations: View citations in EconPapers (55)

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Related works:
Journal Article: Money and growth revisited: Measuring the costs of inflation in an endogenous growth model (1993)
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