Inflation and economic growth in a Schumpeterian model with endogenous entry of heterogeneous firms
Chu, Cozzi, Furukawa, Liao
European Economic Review 98, 2017, 392-409
ttps://www.sciencedirect.com/science/article/pii/S0014292117301319
・This article analyzes the effects of monetary policy on economic growth via a cash-in-advance constraint on R&D investment.
・We also calibrate the model to aggregate data of the US economy and find that the growth-maximizing inflation rate is about 3%, which is consistent with recent empirical estimates.
The optimal inflation rate under Schumpeterian growth
Oikawa & Ueda
Journal of Monetary Economics 100, 2018, 114-125
tps://www.sciencedirect.com/science/article/pii/S0304393218303970
・An endogenous growth model with creative destruction and menu costs is constructed.
・With the calibrated model, the optimal inflation rate is about ?2%.
