Money as a growth-enhancing mechanism

Taub, B. (1995) Money as a growth-enhancing mechanism. Journal of International Trade and Economic Development, 4(3), pp. 385-407. (doi:10.1080/09638199500000028)

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Abstract

When money and capital coexist in an economy in which the marginal product of capital fluctuates heterogeneously across individuals, money serves to exchange productivity. The result is greater efficiency in the sense of encouraging high-return) investment, higher growth rates and higher welfare in a monetary economy. The findings illustrate the benefits of a transition from a financially repressed to a financially developed state, and why extreme breakdowns of the monetary system might he expected to have significant real effects.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Taub, Professor Bart
Authors: Taub, B.
College/School:College of Social Sciences > Adam Smith Business School > Economics
Journal Name:Journal of International Trade and Economic Development
Publisher:Routledge
ISSN:0963-8199
ISSN (Online):1469-9559

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