We build a computable OLG model with monetary growth to calculate the optimal level of inflation rate for Japan, and to study policy reforms make any quantitative impacts on it. Four main results were obtained: (i) the optimal inflation rate for Japan is calculated around 1.0%; (ii) the...

We developed the Overlapping Generations model based on the endogenous growth theory, incorporating Human Capital Stock and conducted some simulations under the alternative population growth patterns and some sensitivity analysis with respect to some key parameters. The main results are as...