Short- and long-run tradeoff of monetary easing

Koki Oikawa, Kozo Ueda*

*この研究の対応する著者

研究成果査読

3 被引用数 (Scopus)

抄録

In this study, we illustrate a tradeoff between the short-run positive and long-run negative effects of monetary easing by using a dynamic stochastic general equilibrium model embedding endogenous growth with creative destruction and sticky prices due to menu costs. Although a monetary easing shock increases the level of consumption because of price stickiness, it lowers the frequency of creative destruction (i.e., product substitution) because inflation reduces the reward for innovation via menu cost payments. When calibrated to the U.S. economy, the model suggests that the adverse effect dominates in the long run.

本文言語English
ページ(範囲)189-200
ページ数12
ジャーナルJournal of The Japanese and International Economies
52
DOI
出版ステータスPublished - 2019 6

ASJC Scopus subject areas

  • 財務
  • 経済学、計量経済学
  • 政治学と国際関係論

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