2013年9月
*Cash-in-Advance Constraint, Optimal Monetary Policy, and Human Capital Accumulation
Research in Economics
- ,
- 巻
- 67
- 号
- 3
- 開始ページ
- 278-288
- 終了ページ
- 記述言語
- 英語
- 掲載種別
- 研究論文(学術雑誌)
This paper investigates optimal monetary policy in an overlapping-generations model with endogenous growth fueled by the accumulation of human capital and underacash-in-advance constraint. We consider the case where the government finances public education fully by seigniorage. Three main results are obtained. First, there exists an optimal money growth rate that maximizes the economic growth rate along the steady<br />
growth path. Second, on this path, the Laffer curve of seigniorage takes the maximum. Finally, the money growth rate for maximizing seigniorage along the steady growth path, which also leads to maximization of the economic growth rate, is lower than that for<br />
maximizing seigniorage in the present period.
growth path. Second, on this path, the Laffer curve of seigniorage takes the maximum. Finally, the money growth rate for maximizing seigniorage along the steady growth path, which also leads to maximization of the economic growth rate, is lower than that for<br />
maximizing seigniorage in the present period.