Accessible Unlicensed Requires Authentication Published by De Gruyter August 18, 2010

Inflation and Innovation-Driven Growth

Peter Funk and Bettina Kromen

This paper analyzes the interaction between inflation and the long-run levels of employment and output growth in a Schumpeterian growth model with quality improving innovations under nominal price rigidity. At the unique REE steady state equilibrium, both employment and growth are hump-shaped functions of money growth peaking at positive inflation rates.

Published Online: 2010-8-18

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