Endogenous Growth and Real Effects of Monetary Policy: R&D and Physical Capital Complementarities

• Type: Article in International Scientific Journal
• Date: 2020

Authors

Pedro Rui Mazeda Gil (Author) FEP; Iglésias, G (Author) Other

Journal

Title: Journal of Money, Credit and Banking

Vol. 52 No. 5

Pages: 1147-1197

ISSN: 0022-2879

Publisher: Wiley-Blackwell

Indexing

ISI Web of Knowledge - 24 Citations

Scopus - 25 Citations

Other information

Authenticus ID: P-00Q-HGD

DOI: 10.1111/jmcb.12632

Abstract (EN): We study the real long-run effects of the structural stance of monetary policy and of inflation, in the context of a monetary growth model where R&D is complemented with physical capital accumulation. We look into the effects on a set of real macroeconomic variables that have been of interest to policymakers¿the economic growth rate, real interest rate, physical investment rate, capital-to-labor ratio, R&D intensity, and velocity of money. These variables have been previously analyzed from the perspective of different, separated, strands of the theoretical and empirical literature. Additionally, we analyze the long-run relationship between inflation and both the effectiveness of real industrial-policy shocks and the market structure, assessed namely by average firm size. We present novel cross-country evidence on the empirical relationship between the latter and long-run inflation. © 2019 The Ohio State University

Language: English

Type (Professor's evaluation): Scientific