INFLATION, HUMAN-CAPITAL ACCUMULATION AND LONG-RUN GROWTH

In a model where money enters the production function, Wang and Yip (1 992) find money to be superneutral with respect to the economy's long- run rate of growth. This result is not robust to a generalization of t he technology of human capital accumulation. If human capital accumula tion requires the imput of physical capital, then money is not superne utral with respect to the economy's growth rate. However, for reasonab le parameterizations of the model, inflation is found to have only sma ll effects on growth.