Fiscal and monetary policy interactions in an endogenous growth model with financial intermediaries

• 成果类型: Article
• 署名作者: Espinosa-Vega, VA; Yip, CK
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Atlanta; Chinese University of Hong Kong
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/1468-2354.00030
• 发表日期: 1999
• 页码: 595-615
• 关键词: economic-growth; inflation; money

摘要

This paper presents a framework that can help reconcile conflicting findings in the growth-inflation literature. Here, the behavior of financial intermediaries plays a crucial role in the determination of the economy's inflation and real growth rates. Absent any restrictions on financial intermediation, there will be a unique equilibrium when agents are fairly risk averse. In this case, an increase in seigniorage-financed government spending will always be inflationary and detrimental to growth. When agents exhibit a low degree of risk aversion, multiple equilibria emerge and a positive relation between inflation and growth a la Tobin can be observed.