Money Growth Key to Sustained Economic Growth Through Technological Innovation
The article introduces a new model that looks at how money growth affects long-term economic growth. By including R&D in the model, the researchers found that faster money growth leads to more jobs and faster economic growth. For high rates of money growth, the economy can grow steadily based on ongoing R&D efforts. However, if money growth is too slow, the economy can get stuck without long-term growth. This suggests that money growth plays a crucial role in determining the pace of economic growth over time.