学术研究﹀
convergence, financial development, and policy analysis?
2018-07-26
内容摘要：
no. e2018007
convergence, financial development, and policy analysis?
justin yifu lin, jianjun miao, pengfei wang
abstract
we study the relationship among inflation, economic growth, and financial development in a schumpeterian overlapping-generations model with credit constraints. in the baseline case money is super-neutral. when the financial development exceeds some critical level, the economy catches up and then converges to the growth rate of the world technology frontier. otherwise, the economy converges to a poverty trap with a growth rate lower than the frontier and with inflation decreasing with the level of financial development. we then study efficient allocation and identify the sources of inefficiency in a market equilibrium. we show that a particular combination of monetary and fiscal policies can make a market equilibrium attain the efficient allocation.
key words: economic growth, innovation, credit constraints, convergence, policy analysis, money, inflation
jel classifications codes: o11, o23, o31, o33, o38, o42