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Inflation, variability, and the evolution of human capital in a model with transactions costs

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posted on 10.10.2006, 08:28 by Dimitrios Varvarigos
In a monetary growth model, I show that average inflation inhibits growth while inflation volatility enhances it. The effect of nominal volatility on human capital accumulation depends on the response of money demand and the corresponding extent of transactions costs rather than from a direct, precautionary motive.

History

School

  • Business and Economics

Department

  • Economics

Pages

202637 bytes

Publication date

2006

Notes

Economics Research Paper 06-16

Language

en

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