Discrete Dynamics in Nature and Society
Volume 2008 (2008), Article ID 435787, 14 pages
doi:10.1155/2008/435787
Research Article
A Discrete Monetary Economic Growth Model with the MIU Approach
College of Asia Pacific Management, Ritsumeikan Asia Pacific University, Jumonjibaru, Beppu-Shi, Oita-ken 874-8577, Japan
Received 6 May 2007; Revised 8 January 2008; Accepted 26 February 2008
Academic Editor: Huang Weihong
Copyright © 2008 Wei-Bin Zhang. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
This paper proposes an alternative approach to economic growth with money. The production side is the same as the Solow model, the Ramsey model, and the Tobin model. But we deal with behavior of consumers differently from the traditional approaches. The model is influenced by the money-in-the-utility (MIU) approach in monetary economics. It provides a mechanism of endogenous saving which the Solow model lacks and avoids the assumption of adding up utility over a period of time upon which the Ramsey approach is based.