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Money, Growth and Finite Horizons

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  • Petrucci, Alberto

Abstract

The implications of endogenous labor supply for money superneutrality in OLG economies are analyzed. Inflation increases capital and output, while it affects labor ambiguously in a closed economy. Inflation reduces capital and output, but stimulates wealth in an open economy.

Suggested Citation

  • Petrucci, Alberto, 2004. "Money, Growth and Finite Horizons," Economics & Statistics Discussion Papers esdp04018, University of Molise, Department of Economics.
    • Handle: RePEc:mol:ecsdps:esdp04018
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    References listed on IDEAS

    as
    1. Hahn, Frank, 1990. "On Inflation," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 6(4), pages 15-25, Winter.
    2. Drazen, Allan, 1981. "Inflation and capital accumulation under a finite horizon," Journal of Monetary Economics, Elsevier, vol. 8(2), pages 247-260.
    3. Van Der Ploeg, Frederick & Marini, Giancarlo, 1988. "Finite horizons and the non-neutrality of money," Economics Letters, Elsevier, vol. 26(1), pages 57-61.
    4. Orphanides, Athanasios & Solow, Robert M., 1990. "Money, inflation and growth," Handbook of Monetary Economics, in: B. M. Friedman & F. H. Hahn (ed.), Handbook of Monetary Economics, edition 1, volume 1, chapter 6, pages 223-261, Elsevier.
    5. Blanchard, Olivier J, 1985. "Debt, Deficits, and Finite Horizons," Journal of Political Economy, University of Chicago Press, vol. 93(2), pages 223-247, April.
    6. Wang, Ping & Yip, Chong K, 1992. "Alternative Approaches to Money and Growth," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 24(4), pages 553-562, November.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Inflation; Capital accumulation; Labor supply; Overlapping generations.;
    All these keywords.

    JEL classification:

    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • O42 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Monetary Growth Models

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