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A Discrete Monetary Economic Growth Model with the MIU Approach

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  • Wei-Bin Zhang

Abstract

This paper proposes an alternative approach to economic growth with money. The production side is the same as the Solow model, the Ramsey model, and the Tobin model. But we deal with behavior of consumers differently from the traditional approaches. The model is influenced by the money-in-the-utility (MIU) approach in monetary economics. It provides a mechanism of endogenous saving which the Solow model lacks and avoids the assumption of adding up utility over a period of time upon which the Ramsey approach is based.

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  • Wei-Bin Zhang, 2008. "A Discrete Monetary Economic Growth Model with the MIU Approach," Discrete Dynamics in Nature and Society, Hindawi, vol. 2008, pages 1-14, April.
    • Handle: RePEc:hin:jnddns:435787
    DOI: 10.1155/2008/435787
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