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The B.E. Journal of Macroeconomics

Editor-in-Chief: Cavalcanti, Tiago / Kambourov, Gueorgui

Ed. by Abraham, Arpad / Carceles-Poveda , Eva / Debortoli, Davide / Lambertini, Luisa

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The Dynamic Relationship between Inflation and Output Growth in a Cash-Constrained Economy

Chia-Hui Lu
  • 1National Taipei University,
/ Been-Lon Chen
  • 2Academia Sinica,
/ Mei Hsu
  • 3National Taipei University,
Published Online: 2011-05-13 | DOI: https://doi.org/10.2202/1935-1690.2145

This paper studies the dynamic relationship between inflation and output growth in neoclassical growth models with endogenous cash constraints. We show this dynamic relationship is negative if the degree of cash constraints on investment is smaller than the degree of cash constraints on consumption but is positive if otherwise.

Keywords: capital accumulation; cash constraint; dynamics

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Published Online: 2011-05-13

Citation Information: The B.E. Journal of Macroeconomics, ISSN (Online) 1935-1690, DOI: https://doi.org/10.2202/1935-1690.2145. Export Citation

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