This paper investigates the role of monetary policy in economic growth. Using an infinitely lived overlapping-generations model with a simple convex technology that can yield endogenous growth, the authors show that money supply behavior of the government may have significant effects on the...

This paper investigates the relationship between inflation (the rate of monetary expansion) and economic growth in a monetary version of Benhabib and Farmer's ("Journal of Economic Theory", <b>63</b>, 19-41, 1994) one-sector endogenous growth model, in which money reduces transaction costs or shopping...