00000caa a22000003i 4500 UP-1685594773862388502 Buklod 20210316165005.0 m | | ta 210316s1996 xx r |||| u|eng d (iLib)UPBAG-00039513692 BAG rda eng ARTICLE-2693 Reside, Renato E., Jr. author. Inflation, growth and policy coordination Renato E. Reside, Jr. and Parantap Basu. 1996. pages 253-282 25 cm text rdacontent unmediated rdamedia volume rdacarrier Includes bibliographical references (pages 281-282). The effect of monetary policy on output growth and inflation is examined in a monetary endogenous growth model with an explicit banking sector that intermediates capital. Monetary policy is coordinated with fiscal policy in the sense that all the seigniorage revenue gleaned through the inflation tax is spent to make efficient provision of public services. With the reserve requirement and money growth as instruments, policy coordination implies that one instrument may be solved endogenously when the other is predetermined. A higher reserve requirement being a binding constraint on capital creation generates adverse growth effects. On the other hand, by endogenously reducing the money growth rate, shiver reserve requirement lowers inflation. Interestingly, when public services are not productive, policies need not be coordinated. In this scenario, we derive a non-standard result wherein a rise in reserve requirements raises inflation. We conclude with the suggestion that differences in the degree of policy coordination account for cross-country differences in the persistence of inflation. Inflation (Finance). Monetary policy. Fiscal policy. Basu, Parantap author. The Philippine Review of Business and Economics Vol. XXXIII, No. 2 (December 1996), p. 253-282. (viewed 16 March 2021) FI Analytics