Logo
Munich Personal RePEc Archive

Inflation and investment in monetary growth models

Ciżkowicz, Piotr and Hołda, Marcin and Rzońca, Andrzej (2009): Inflation and investment in monetary growth models.

[thumbnail of MPRA_paper_19307.pdf]
Preview
PDF
MPRA_paper_19307.pdf

Download (357kB) | Preview

Abstract

The article contains a review of monetary growth models. We analyze the ways in which money is introduced into these models and the models’ conclusions about the impact of inflation on investment. We find that the models differ widely with respect to the ways in which they account for money and its functions in the economy as well as with respect to the “technical” assumptions, about e.g. the form of the utility function or the production function. Despite these differences most models fail to adequately capture money’s role and are highly sensitive to changes in the assumptions. Moreover, the models differ in their predictions about inflation’s impact on capital accumulation, with some models offering conclusions that are not only counterintuitive but also inconsistent with empirical evidence.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.