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| Jang-Ting Guo and Shu-Hua Chen |
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| ''On the growth and velocity effects of money'' |
| ( 2008, Vol. 5 No.13 ) |
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| We show that a one-sector AK model of endogenous growth with the most generalized cash-in-advance constraint is able to account for (i) the observed long-run negative relationship between the nominal growth rate of money and the income velocity of money, (ii) the empirically ambiguous effect of changing inflation on the economy's output growth, and (iii) the divergent growth experience of countries that start with similar macroeconomic conditions. |
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| Keywords: |
JEL: E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit: General
O4 - Economic Growth and Aggregate Productivity: General |
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| Manuscript Received : Apr 01 2008 | | Manuscript Accepted : Apr 02 2008 |
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