This study analyzes the effects of inflation on the long-run nexus between unemployment and economic growth. We introduce money demand via a cash-in-advance (CIA) constraint on R&D investment into a scale-invariant Schumpeterian growth model with matching frictions in the labor market. Given the...

This paper analyzes economic policies in resource rich countries and various mechanisms of resource curse leading to a potentially inefficient use of resources. Arguments are provided in favor of "conditional resource curse" hypothesis: resource abundance hampers growth if institutions of a...

If imperfect market institutions prevail in a country and inflation amounts to about 10% then efforts directed to further inflation decrease would probably hamper economic growth. To substantiate this thesis, I make references on opinions of well-known economists, discuss results of recent...