https://scholars.lib.ntu.edu.tw/handle/123456789/349339
Title: | Social status and the growth effect of money | Authors: | Chen, Hung-Ju Guo, Jang-Ting HUNG-JU CHEN |
Issue Date: | 2009 | Journal Volume: | 60 | Journal Issue: | 1 | Start page/Pages: | 133-141 | Source: | Japanese Economic Review | Abstract: | It has been shown that in a standard one-sector AK model of endogenous growth with wealth induced preferences for social status, the economy's growth rates of real output and nominal money supply are positively related when the cash in advance constraint is applied solely to the household's consumption purchases. However, a positive output growth effect of money/inflation is not consistent with the existing empirical evidence. We show that when gross investment must be financed by real money balances as well, this result is overturned, i.e. higher inflation is detrimental to economic growth, because of a dominating portfolio substitution effect. © Journal compilation © 2009 Japanese Economic Association. |
URI: | http://www.scopus.com/inward/record.url?eid=2-s2.0-61349170254&partnerID=MN8TOARS http://scholars.lib.ntu.edu.tw/handle/123456789/349339 |
DOI: | 10.1111/j.1468-5876.2008.00460.x | SDG/Keyword: | economic growth; economic theory; endogenous growth; inflation; social status |
Appears in Collections: | 經濟學系 |
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