search query: @author Ploeg, F. van der / total: 18
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| Author: | Ploeg, F. van der |
| Title: | Money and capital in interdependent economies with overlapping generations |
| Journal: | Economica
1991 : MAY, VOL. 58:230, p. 233-256 |
| Index terms: | CAPITAL GROWTH MONEY EXCHANGE RATES FLOATING RATES INTEREST RATES FINANCING ECONOMIC THEORY ECONOMIC CONDITIONS |
| Language: | eng |
| Abstract: | A two-country optimizing model with money, capital accumulation, floating exchange rates, uncovered interest parity, perfect foresight, finite lives and population growth has been formulated. For the case of zero birth rate, individuals are indifferent between tax finance and bond finance or money finance, so that Ricardian debt-neutrality and super-neutrality prevail. A tax-financed increase in monetary growth leads to a fall in the world real interest rate and increase in capital accumulation. Numerical methods are used to calculate the short-run and interim multipliers and to discuss the effects of imperfect substitution between home and foreign goods. |
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