Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83966
Authors: 
Gillman, Max
Kejak, Michal
Year of Publication: 
2005
Series/Report no.: 
Cardiff Economics Working Papers E2005/15
Abstract: 
The paper shows that contrary to conventional wisdom an endogenous growth economy with human capital and alternative payment mechanisms can robustly explain major facets of the long run inflation experience. A negative inflation-growth relation is explained, including a striking non-linearity found repeatedly in empirical studies. A set of Tobin (1965) effects are also explained and, further, linked in magnitude to the growth effects through the interest elasticity of money demand. Undisclosed previously, this link helps fill out the intuition of how the inflation experience can be plausibly explained in a robust fashion with a model extended to include credit as a payment mechanism.
Subjects: 
Human capital
cash-in-advance
interest-elasticity
credit production
JEL: 
O42
E31
E22
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.