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Some Remarks on the Effects of Productivity on Growth

Zsolt Gilányi ; Department of Microeconomics, Corvinus University of Budapest


Puni tekst: engleski pdf 530 Kb

str. 14-20

preuzimanja: 396

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Sažetak

Standard economic models predict that a "ceteris paribus" increase in the overall productivity results in an increased production if the economy departs from an equilibrium state. We show that this result is valid under specific conditions In other cases, even if the initial conditions of an economic system are so that the economy converges into (or starts from) an equilibrium state, the increase of overall productivity generally results, in the long run, in the collapse of the economy due to the unbalanced change in the money holdings. Hence, in general, an appropriate expansive monetary policy should accompany the increase of productivity.

Ključne riječi

economic growth and aggregate productivity; multisector growth; monetary growth

Hrčak ID:

25614

URI

https://hrcak.srce.hr/25614

Datum izdavanja:

16.7.2007.

Posjeta: 1.126 *