Inflation, Unemployment and Economic Growth in a Schumpeterian Economy
2015/08/18
研討會日期 : 2015-08-18
時間 : 14:30
主講人 : Professor Angus Chu
主持人 : Professor Ching-Chong Lai
地點 : Conference Room B110
演講者簡介 : Professor Chu received his Ph.D. in Economics from University of Michigan at 2008. He is currently a Professor of Economics at University of Liverpool Management School, University of Liverpool. His primary research field is Macroeconomics and research areas are monetary economics, economic growth, innovation and intellectual property rights.
演講摘要 : This study explores the long-run relationship between inflation and unemployment in a monetary Schumpeterian growth model with matching frictions in the labor market and cash-in-advance (CIA) constraints on consumption and R&D investment. Under the CIA constraint on R&D, a higher inflation that raises the opportunity cost of cash holdings leads to a decrease in innovation and economic growth, which in turn decreases labor-market tightness and increases unemployment. Under the CIA constraint on consumption, a higher inflation instead decreases unemployment in addition to stifling innovation and economic growth. Therefore, the two CIA constraints have drastically different implications on the long-run relationship between inflation and unemployment. This theoretical finding provides a plausible and parsimonious explanation (via the relative magnitude of the two CIA constraints) on the mixed empirical results on the relationship between inflation and unemployment in the literature. Finally, we also calibrate our model to aggregate data in the US and Eurozone to explore quantitative implications on the relationship between inflation and unemployment.
