Inflation and growth: Impatience and a qualitative equivalence

Been Lon Chen*, Mei Hsu, Chia Hui Lu

*此作品的通信作者

研究成果: 雜誌貢獻短篇回顧評介論文同行評審

10 引文 斯高帕斯(Scopus)

摘要

This paper studies the role of an endogenous time preference on the relationship between inflation and growth in the long run in both the money-in-utility-function (MIUF) and transactions-costs (TC) models. We establish a qualitative equivalence between the two models in a setup without a labor-leisure tradeoff. When the time preference is decreasing (or increasing) in consumption and real balances, both the MIUF and TC models are qualitatively equivalent in terms of predicting a negative (or positive) relationship between inflation and growth in a steady state. Both a decreasing and an increasing time preference in consumption are consistent with the arguments found within the literature. While a decreasing time preference in real balances corroborates with empirical evidence, there is no evidence in support of an increasing time preference in real balances.

原文英語
頁(從 - 到)1309-1323
頁數15
期刊Journal of Money, Credit and Banking
40
發行號6
DOIs
出版狀態已發佈 - 2008 九月

ASJC Scopus subject areas

  • 會計
  • 金融
  • 經濟學與計量經濟學

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