Growth and wage effects of the monetary policy

• Type: Article in International Scientific Journal
• Date: 2022-10

Authors

Óscar Afonso (Author) FEP

Journal

Title: INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS

Vol. 27 No. 4

Pages: 4058-4084

ISSN: 1076-9307

Publisher: John Wiley & Sons

Indexing

ISI Web of Knowledge - 3 Citations

Scopus - 3 Citations

Other information

Authenticus ID: P-00T-5XY

DOI: 10.1002/ijfe.2359

Abstract (EN): We analyse the effects of the monetary policy (inflation) on a set of real macroeconomic variables, via cash-in-advance (CIA) constraints and an 'inflation-rate' complexity R&D effect in a knowledge-driven horizontal R&D growth model with skilled and unskilled labour. The model is calibrated to the U.S. economy. We find that the monetary policy has no effect on firm-size growth, but a negative impact on economic growth, real interest rate, skill premium, R&D intensity, and welfare; positive influence on the velocity of money. The sign of the theoretical relationships is in line with the dominant empirical evidence.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 27