Seigniorage and the welfare cost of inflation: evidence from an intertemporal model of money and consumption
Article Abstract:
An analysis of the limits in a model describing cross-relations between consumption, money holdings, inflation and assets' returns is presented. The analysis applies data taken from Israel's high-inflation economy for the period covering 1970-1988. It is shown that the model exhibits differences compared with a Cagan-type model in terms of seigniorage factors. The analyzed model shows a GNP related ratio, while the Cagan model explains seigniorage by the Laffer curve.
Publication Name: Journal of Monetary Economics
Subject: Economics
ISSN: 0304-3932
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
Inflation, nominal interest rates and the variability of output
Article Abstract:
The variance of output is demonstrated to be an increasing operation of the trend inflation rate when fluctuations in output mainly originate from disturbances to the money market. The variance of output is a decreasing operation of the trend inflation rate when they originate from disturbances to the goods market. When the two disturbances are considerable, there exists, overall, a crucial non-zero inflation rate that minimizes the variance of output.
Publication Name: Journal of Monetary Economics
Subject: Economics
ISSN: 0304-3932
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: The effect of education on crime: evidence from prison inmates, arrests and self reports. Are idle hands the devil's workshop? Incapacitation, concentration, and juvenile crime
- Abstracts: From the great depression to the great inflation: path dependence and monetary policy. Inflation, output growth, and stabilization in Turkey, 1980-2002
- Abstracts: Distance and prediction error variance constraints for ARMA model portfolios. Recursive modelling of symmetric and asymmetric volatility in the presence of extreme observations
- Abstracts: Functional equivalence between intertemporal and multisectoral investment adjustment costs. What determines aggregate returns to scale?
- Abstracts: Women in the economics profession. What is economic sociology and should any economists care? Women in economics: moving up or falling off the academic career ladder?