Article

 

RESEARCH NOTE: A DYNAMIC MODEL OF INCOME VELOCITY FOR CHINA’S PRO-GROWTH MONETARY POLICY  (p.89-93)

by

Chien-Hsun Chen, National University of Singapore

Keywords : Income Velocity, China’s Pro-growth Monetary Policy

JEL classification : E51, P24

Abstract

China’s pro-growth monetary policy not only has the ability to influence the level of national income but also has an inflationary impact on the economy. Thus pro-growth monetary policy through output and price effect might raise the question of dynamic stability of income velocity. In a dynamic model with pro-growth monetary policy, the question of stability of income velocity is theoretical ambiguity.