Endogenous Growth and Nominal Interest Rate Targeting in a Small Open Economy
| Autor: | Hsu,Shuwei, 許書維 |
|---|---|
| Rok vydání: | 2011 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 99 In this paper, within the endogenous growth of small open economy model, we consider endogenous labour supply, capital externality and the transaction cost of production. The monetary policy expressed that an anticipated permanent increase in nominal interest rate how to affect the relevant economic variables and choice optimal nominal interest rate to achieve social welfare maximization. According to the conclusion we know： (1) Considering endogenous labor supply and production with transaction cost, long run balanced output growth rate equal to consumption growth rate, and the anticipated permanent increase in nominal interest rate not influencing long run balanced output growth rate. This is different from the result of Shaw, Lai and Chang (2005) indicated that long run balanced consumption growth rate converges to fixed value, and monetary policy expressed that an increase of anticipated money supply growth rate let long run balanced economic growth rate decline. (2) Although we consider capital externality, the non-arbitrage condition between physical capital and foreign bond known that capital externality doesnt bring distortion to an open economy. So the optimal nominal interest rate is maintained to zero and this is conformable to the Friedman rule. We also can seek out optimal money supply growth rate which is satisfied social welfare maximization and reduces inflation to let the utility of economic system upgrade. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
| Externí odkaz: |
|