Please use this identifier to cite or link to this item:
https://hdl.handle.net/10316/87706
Title: | Inflation, Complexity and Endogenous Growth | Authors: | Sequeira, Tiago Neves Gil, Pedro Mazeda Afonso, Óscar |
Keywords: | inflation, endogenous economic growth, complexity effects, entropy. | Issue Date: | 23-Sep-2019 | Series/Report no.: | CeBer Working Paper 2019-04; | Abstract: | In this article, we argue that inflation increases complexity pertaining to knowledge production (or R&D). Then, we expand a recently developed complexity index based on entropy to include the effect of inflation. As a result of this new mechanism in an endogenous growth model, inflation is no longer superneutral. In the model, inflation can decrease economic growth in a nonlinear way, a sudden upward shock on inflation can severely hurt economic growth and an inflation cut can be responsible for a take-off. These effects are illustrated quantitatively. | URI: | https://hdl.handle.net/10316/87706 | Rights: | openAccess |
Appears in Collections: | I&D CeBER - Working Papers |
Files in This Item:
File | Description | Size | Format | |
---|---|---|---|---|
wp-ceber-2019-4 (11).pdf | 502.39 kB | Adobe PDF | View/Open |
Page view(s)
299
checked on Oct 15, 2024
Download(s)
276
checked on Oct 15, 2024
Google ScholarTM
Check
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.