Money supply and capital accumulation on the transition path revisited

Resumo

Fischer (1979) and Asako (1983) analyze the sign of the correlation between the growth rate of money and the rate of capital accumulation on the transition path. Both plug a CRRA utility (based on a Cobb-Douglas and a Leontief function, respectively) into Sidrauski's model - yet return contrasting results. The present analysis, by using a more general CES utility, presents both of those settings and conclusions as limiting cases, and generates economic gures more consistent with reality (for instance, the interest-rate elasticity of the money demands derived from those previous works is necessarily 1 and 0, respectively).

Ficha do documento

Tipo

Estudo

Ano

2010

Instituição

Fundação Getulio Vargas. Escola de Pós-graduação em Economia

Fonte

Repositório da FGV

Idioma

Inglês

Acesso

Não informado

Identificador

oai:repositorio.fgv.br:10438/4186

Temas

EconomiaDesenvolvimento Econômico

Palavras-chave

Capital accumulationMonetary growthMoney supplySuperneutralityTransition pathEconomiaDisponibilidade monetariaPoupança e investimentoDesenvolvimento econômicoPolítica monetária