Inflation, Endogenous Growth and Regime Switching the Monetary Policy

• Main Authors: Hsiu-Ju Chang, 張秀如
• Other Authors: Yu-Fong Sun
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/90046695492123368599

碩士 === 嶺東科技大學 === 財務金融研究所 === 98 === This research explains that the policy of fixed money growth rate implemented by monetary authorities could not cope with the increased in inflation rate due to supply chain interference. Hence, they adopt fixed inflation rate to overcome this economy downturn. This research applies the regime reform analysis tool on the monetary endogenous growth model developed by Lai, Chen and Shaw (2005) to investigate the effect of implementation of fixed inflation rate to current economy situation. The study reveals that the inflation rate has dropped and production growth rate has improved after the countermeasure action. Hence, fixed inflation rate policy is effective to stabilize the economy in this situation.