Inflation, Variability, and the Evolution of Human Capital in a Model with Transactions Costs

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.

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Year of publication:	2006-07
Authors:	Varvarigos, Dimitrios
Institutions:	School of Business and Economics, Loughborough University
Subject:	money \| growth \| volatility

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Series:	Discussion Paper Series.
Type of publication:	Book / Working Paper
Classification:	E32 - Business Fluctuations; Cycles ; E60 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook. General ; O42 - Monetary Growth Models
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005423006