Money and Growth in a MIU-Based Walrasian General Equilibrium Model

Abstract

This paper is concerned with the role of money in economic growth in a general equilibrium framework. It proposes a monetary growth model by integrating Walrasian general equilibrium theory, neoclassical growth theory, and MIU approach in monetary economics with Zhang's concept of disposable income and utility function. We define the model, find equilibrium, and carry out comparative statics analysis in money policy, preferences and technology.