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Why Economists Don’t Know How to Think about Wealth (or Profits)

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Why Economists Don't Know How to Think about Wealth (or Profits) - Evonomics

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If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation. Please note that corrections may take a couple of weeks to filter through the various RePEc services. Economic literature: papers , articles , software , chapters , books.

Search, inflation and capital accumulation. Registered: Shouyong Shi. This paper constructs a model to integrate the search monetary theory into a neoclassical growth model.


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With divisible goods and money, the model is used to examine the relationship between money growth and capital accumulation. The framework uncovers a distinct extensive effect that an increase in the money growth rate increases the frequency of successful trades by increasing the number of agents in the market. This positive extensive effect on the number of trades can dominate the conventional negative intensive effects of money growth on individuals' labor input and real money balance, in which case increasing the money growth rate increases aggregate capital and output.

This abstract was borrowed from another version of this item. Shi, Shouyong, Handle: RePEc:eee:moneco:vyip as. Corrections All material on this site has been provided by the respective publishers and authors.

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