Answers are grounded in this paper and cite their sources.
This paper analyzes the interaction between inflation and the long-run levels of employment and output growth in a Schumpeterian growth model with quality improving innovations under nominal price rigidity. At the unique REE steady state equilibrium, both employment and growth are hump-shaped functions of money growth peaking at positive inflation rates.
No takes yet. Share an insight, caveat, or question.
Funk et al. (2010) studied this question.
Synapse has enriched 5 related papers. Consider them for comparative context: