Uncertainty-Induced Dynamic Inefficiency and the Optimal Inflation Rate

The Relation Between Inflation and Inflation Uncertainty In Iran

On the Optimal Inflation Rate

How do financial frictions affect the optimal inflation rate? Can financial frictions alone annul the long-run super-neutrality of money? Should the inflation rate be higher in emerging market economies with less developed financial markets than in advanced economies, as is currently observed? To answer these questions we set up an incomplete markets model in which households choose portfolios ...

The Optimal Rate Of Inflation∗

Observed inflation targets around the industrial world are concentrated at two percent per year. This chapter investigates the extent to which the observed magnitudes of inflation targets are consistent with the optimal rate of inflation predicted by leading theories of monetary nonneutrality. We find that consistently those theories imply that the optimal rate of inflation ranges from minus th...

Concerning the Optimal Rate of Inflation

4 Non-technical Summary 5

Optimal Portfolio Series Formula under Dynamic Appreciation Rate Uncertainty

A closed-form series solution formula for the problem of optimal portfolio diversification under dynamic (possibly, long-term-memory) appreciation rate uncertainty, for an investor with HARA utility, is discovered. To that end a calculus of variations method, recently introduced by the author, was extended. The usefulness of the obtained result is examined by means of solving a few guiding exam...