Title: Money supply and economic growth under environmental pressure: the strategy for re-growth

Authors: Feng Dai; Ling Liang; Songtao Wu

Addresses: Department of Management Science, Zhengzhou Information Engineering University, Zhengzhou, Henan 450002, China ' Department of Management Science, Zhengzhou Information Engineering University, Zhengzhou, Henan 450002, China ' Department of Management Science, Zhengzhou Information Engineering University, Zhengzhou, Henan 450002, China

Abstract: This paper focuses on money supply and economic growth under environmental pressure. Based on the Solow growth model, a formal advance-retreat course (ARC) model and nominal ARC model for money supply are constructed, the basic conditions for increasing money to promote output growth are presented, measurement methods for liquidity are designed, and the empirical research is presented. The findings include the following: increasing money supply promotes conditional economic growth, only major reforms can start a new growth process and promote effective economic recovery and re-growth, and economic reforms and their timing are vital.

Keywords: economics; ARC; advance-retreat course; money supply; liquidity control; recovery strategy; economic re-growth; economic growth; environmental pressure; economic recovery; economic reforms.

DOI: 10.1504/IJMEF.2013.055717

International Journal of Monetary Economics and Finance, 2013 Vol.6 No.1, pp.55 - 80

Received: 22 Jan 2013
Accepted: 22 May 2013
Published online: 05 Aug 2013 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article