The optimal inflation rate under Schumpeterian growth
构建了一个包含菜单成本粘性价格的内生增长模型，分析通胀与经济增长的关系，发现央行应将通胀目标设定为负的基础增长率，且最优通胀率接近增长最大化通胀率。
To analyze the relationship between inflation and economic growth, we construct an endogenous growth model with creative destruction, incorporating sticky prices due to menu costs. Price changes reduce the reward for innovation and thus lower the frequency of creative destruction. Central banks can maximize the growth rate by setting their inflation target at the negative of a fundamental growth rate. While the optimal inflation rate may be greater than the growth-maximizing inflation rate, our calibrated model shows that the optimal inflation rate is close to the growth-maximizing inflation rate and that a deviation from the optimal level has sizable impacts.