Inflation and Growth: A Mixed Relationship in an Innovation-Driven Economy
2018/01/30
研討會日期 : 2018-01-30
時間 : 14:30
主講人 : Professor Chien-Yu Huang (黃千祐)
主持人 : Professor Juin-Jen Chang
地點 : Conference Room B110
演講者簡介 : Professor Huang received his Ph.D. in Economics from North Carolina State University, Raleigh, NC in 2012. He is currently an Associate Professor at Institute of Urban Development, Nanjing Audit University. His primary research fields are International Finance, Macroeconomics, and Economic Growth and Secondary are Applied Econometrics; Industrial Organization.
演講摘要 : This paper investigates the effects of monetary policy on long-run economic growth via different cash-in-advance constraints on R&D in a Shumpeterian growth model with vertical and horizontal innovations. The relationship between inflation and growth is contingent on the weights of two innovations on growth, the relative entry cost, and the relative extent of diminishing returns to innovation. The model can generate a mixed (monotonic or non-monotonic) relationship between inflation and growth, provided that the relative strength from the entry costs and from the extent of diminishing returns may change with monetary policy. In particular, when the relative entry cost of horizontal R&D compared to vertical R&D is low, inflation and growth can exhibit an inverted-U shaped relationship depending on the weights of two innovations on economic growth. Finally, the model is calibrated by applying the aggregate data of the US economy, and we find that the threshold value of the inflation rate is around 2.8%, which is closely consistent with recent empirical estimates.
