The dynamic relationship between inflation and output growth in a cash-constrained economy

Chia Hui Lu; Been Lon Chen; Mei Hsu

doi:10.2202/1935-1690.2145

The dynamic relationship between inflation and output growth in a cash-constrained economy

Chia Hui Lu, Been Lon Chen^*, Mei Hsu

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

Abstract

This paper studies the dynamic relationship between inflation and output growth in neoclassical growth models with endogenous cash constraints. We show this dynamic relationship is negative if the degree of cash constraints on investment is smaller than the degree of cash constraints on consumption but is positive if otherwise.

Original language	English
Article number	15
Journal	B.E. Journal of Macroeconomics
Volume	11
Issue number	1
DOIs	https://doi.org/10.2202/1935-1690.2145
Publication status	Published - 2011
Externally published	Yes

Keywords

capital accumulation
cash constraint
dynamics

ASJC Scopus subject areas

Economics and Econometrics

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10.2202/1935-1690.2145

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abstract = "This paper studies the dynamic relationship between inflation and output growth in neoclassical growth models with endogenous cash constraints. We show this dynamic relationship is negative if the degree of cash constraints on investment is smaller than the degree of cash constraints on consumption but is positive if otherwise.",

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The dynamic relationship between inflation and output growth in a cash-constrained economy

Abstract

Keywords

ASJC Scopus subject areas

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