Investment, Output and Interest Rate Policy when Capital is Mobile
Bibliographic Data
| ID | 9706907 |
|---|---|
| Authors | D Fielding (0000-0003-0506-4233, University of Nottingham), Paul Mizen (0000-0002-6193-0872, University of Nottingham) |
| Year | 1997 |
| Volume | 107 |
| Issue | 441 |
| Pages | 431-440 |
| Publication date | 1997-03-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/j.0013-0133.1997.168.x |
| OpenAlex | W2006630920 |
| Language | EN |
| References cited | 1 |
The determination of long‐run aggregate supply is a feature which short‐run models of macroeconomic policy coordination tend to neglect but which has implications for the setting of interest rates. In this paper we develop an open‐economy model of output maximisation, where investment and capital flows are crucial determinants of output and are in turn influenced by interest rate policy and credible control of inflation. The model represents an extension to short‐run models of government policy‐making, and emphasises that coordination of relative interest rates is as important as control of inflation
Capital (architecture · Economics · Inflation (cosmology · Interest rate · Investment (military · Macroeconomics · Monetary economics · Monetary policy · Neglect · Real interest rate · Short run · Economic theories and models · Economic Theory and Policy · Monetary Policy and Economic Impact
| Citation velocity | historical |
|---|---|
| Highly cited | No |