Money and growth in a production economy with multiple assets

Content Provider	Semantic Scholar
Author	Kaas, Leo Weinrich, Gerd
Copyright Year	2000
Abstract	We consider a Diamond–type model of endogenous growth in which there are three assets: outside money, government bonds, and equity. Due to productivity shocks, the equity return is uncertain, and risk averse investors require a positive equity premium. Typically, there exist two steady states, but only one of them is stable, both in the forward perfect foresight dynamics and under adaptive expectations. Tight monetary policy is harmful for growth in the stable steady state. These results hold under four different monetary policy strategies applied by the monetary authority. A monetary contraction increases the bond return, reduces the equity premium and thereby capital investment and growth.
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Alternate Webpage(s)	https://kops.uni-konstanz.de/bitstream/handle/123456789/12274/17.pdf?isAllowed=y&sequence=1
Alternate Webpage(s)	https://www.econstor.eu/bitstream/10419/71214/1/74011073X.pdf
Alternate Webpage(s)	http://irihs.ihs.ac.at/1289/1/es-86.pdf
Language	English
Access Restriction	Open
Subject Keyword	Arabic numeral 0 Assumed Cobham's thesis Diabetes Insipidus Diamond Ectomesenchymal Chondromyxoid Tumor Existential quantification Instability Labor (Childbirth) Linear programming relaxation Money Risk aversion Romer Shock Social capital Steady state Tree accumulation Work Productivity and Activity Impairment General Health V2.0 Questionnaire indicine-N-oxide
Content Type	Text
Resource Type	Article