The welfare costs of expected and unexpected inflation
نویسندگان
چکیده
منابع مشابه
The Welfare Costs of Expected and Unexpected Inflation
The monetary search model by Lagos and Wright (2005) is extended with imperfect information about nominal shocks à la Lucas (1972 and 1973). This framework is useful to estimate the welfare costs of expected and erratic inflation because it provides an avenue to identify the transactions affected by monetary shocks and how tolerant individuals are to the fluctuations of output in these transact...
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The purpose of this paper is to estimate the welfare cost of inflation in Iran. We first use the long-horizon regression approach developed by Fisher and Seater (1993) to obtain an estimate of the inflation rate elasticity of money demand and then the Baily’s consumer surplus approach to calculate the welfare cost function. The results show that reducing inflation rate from 40% to 0% increases ...
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Recent years have seen substantial progress in our understanding of pricing decisions at the micro level. Access to large scale data sources on prices at the level of individual products has given us rich information on how frequently prices change, by what magnitudes, and how the aggregation of price changes in individual firms maps into aggregate inflation (see, among many others, Mark Bils a...
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Bank of Canada working papers are theoretical or empirical works-in-progress on subjects in economics and finance. The views expressed in this paper are those of the authors. No responsibility for them should be attributed to the Bank of Canada. Abstract This paper studies the welfare costs and the redistributive effects of inflation in the presence of idiosyncratic liquidity risk, in a micro-f...
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ژورنال
عنوان ژورنال: Journal of Monetary Economics
سال: 2009
ISSN: 0304-3932
DOI: 10.1016/j.jmoneco.2009.09.005