Real interest rates and endogenous growth in a monetary economy

In endogenous growth models where the engine of growth is human capital acquired via formal education, inflation taxes may raise or lower real interest rates depending upon whether or not physical and/or human capital are liquidity constrained. Cases are examined.

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Bibliographic Details
Published in:Economics letters 1991-01, Vol.37 (2), p.105-109
Main Authors: Marquis, Milton H., Reffett, Kevin L.
Format: Article
Language:English
Subjects:
Interest rates
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Description
Summary:In endogenous growth models where the engine of growth is human capital acquired via formal education, inflation taxes may raise or lower real interest rates depending upon whether or not physical and/or human capital are liquidity constrained. Cases are examined.
ISSN:0165-1765
1873-7374
DOI:10.1016/0165-1765(91)90115-2