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題名 On the employment, investment and current account effects of inflation: A revisit 作者 朱美麗
Chang, Wen-ya
Tsai, Hsueh-fang
Chu, Mei-Lie
Chang, Juin-jen貢獻者 經濟學系 關鍵詞 Inflation targeting; Employment; Capital accumulation; Current account 日期 2015-12 上傳時間 23-Nov-2017 16:56:25 (UTC+8) 摘要 This paper supplements the studies of Mansoorian and Mohsin (2004, 2006) on the macro effects of a temporary policy of inflation targeting by shedding light on two neglected scenarios. These scenarios are not only empirically plausible, but also give rise to rather different policy implications. First, we show that if consumption and leisure are substitutes and their substitutability is relatively large, a temporary rise in inflation can raise, rather than lower, the shadow value of assets. This effect stemming from the rise in the shadow price of assets plays a crucial, but opposite, role vis-à-vis the direct effect of inflation. The induced effect of the shadow price is long-lasting persistence and has a permanent consequence, even though the policy is temporary. As a result, in the steady state, employment, capital, and output increase, rather than decrease, in response to a temporary increase in inflation. Second, if consumption and leisure are complements, we find that in response to a temporary decrease in inflation, employment, capital and output suffer short-run costs in the transition, but reap long-run benefits in the steady state. This transitional result is in accordance with the Canadian responses. 關聯 Journal of Macroeconomics, Volume 46, Pages 278-294 資料類型 article DOI https://doi.org/10.1016/j.jmacro.2015.08.009 dc.contributor 經濟學系 zh_TW dc.creator (作者) 朱美麗 zh_TW dc.creator (作者) Chang, Wen-ya en_US dc.creator (作者) Tsai, Hsueh-fang en_US dc.creator (作者) Chu, Mei-Lie en_US dc.creator (作者) Chang, Juin-jen en_US dc.date (日期) 2015-12 dc.date.accessioned 23-Nov-2017 16:56:25 (UTC+8) - dc.date.available 23-Nov-2017 16:56:25 (UTC+8) - dc.date.issued (上傳時間) 23-Nov-2017 16:56:25 (UTC+8) - dc.identifier.uri (URI) http://nccur.lib.nccu.edu.tw/handle/140.119/114862 - dc.description.abstract (摘要) This paper supplements the studies of Mansoorian and Mohsin (2004, 2006) on the macro effects of a temporary policy of inflation targeting by shedding light on two neglected scenarios. These scenarios are not only empirically plausible, but also give rise to rather different policy implications. First, we show that if consumption and leisure are substitutes and their substitutability is relatively large, a temporary rise in inflation can raise, rather than lower, the shadow value of assets. This effect stemming from the rise in the shadow price of assets plays a crucial, but opposite, role vis-à-vis the direct effect of inflation. The induced effect of the shadow price is long-lasting persistence and has a permanent consequence, even though the policy is temporary. As a result, in the steady state, employment, capital, and output increase, rather than decrease, in response to a temporary increase in inflation. Second, if consumption and leisure are complements, we find that in response to a temporary decrease in inflation, employment, capital and output suffer short-run costs in the transition, but reap long-run benefits in the steady state. This transitional result is in accordance with the Canadian responses. en_US dc.format.extent 921676 bytes - dc.format.mimetype application/pdf - dc.relation (關聯) Journal of Macroeconomics, Volume 46, Pages 278-294 en_US dc.subject (關鍵詞) Inflation targeting; Employment; Capital accumulation; Current account en_US dc.title (題名) On the employment, investment and current account effects of inflation: A revisit en_US dc.type (資料類型) article dc.identifier.doi (DOI) 10.1016/j.jmacro.2015.08.009 dc.doi.uri (DOI) https://doi.org/10.1016/j.jmacro.2015.08.009
