PHBS Holds Seminar on Inflation and Economic Growth
datetime:2015-12-14 10:53:23
On December 4th, 1015 Peking University HSBC Business School invited Dr. Ge Zhou, Assistant Professor from Zhejiang University to present his paper on “Inflation, Liquidity and Long run Growth”.

Dr. Ge Zhou is an Assistant Professor at Zhejiang University. He obtained his PhD in economics from Hong Kong University of Science and Technology. His research interest focuses on Macro-finance and Macroeconomics. He has published his work in Macroeconomic Dynamics and Annual of Economics and Finance. He is also the referee for Economic Theory, Journal of Mathematical Economics.

In his paper Dr. Zhou revisited the long-run relationship between inflation and economic growth by exploring the impact of inflation on investment. He elaborated that inflation may have a positive effect on growth by mitigating the liquidity risks of investment projects. He showed this through some graphs.

He further added that together with the traditional effect of the "inflation tax" on investment, a hump-shaped relationship between inflation and economic growth can be obtained in a calibrated model, which is consistent with the U.S. postwar data. Heexplained and showed that the Sensitivity analysis he conducted suggests that the degree of financial development and the magnitude of the aggregate liquidity demand help explain the mixed empirical findings.

The seminar concluded with a question and answer session from the attendees.

By Fayeza Yahya