On the Markov Switching Welfare Cost of Inflation

2019 ◽  
Author(s):  
Wei Dai ◽  
Apostolos Serletis
Keyword(s):  
Markov Switching ◽  
Welfare Cost ◽  
Welfare Cost Of Inflation

scholarly journals The welfare cost of inflation with banking time

2018 ◽  
Vol 20 (1) ◽  
Author(s):  
Max Gillman
Keyword(s):  
Inflation Rate ◽  
Government Expenditure ◽  
Welfare Cost ◽  
Zero Inflation ◽  
Fundamental Parameters ◽  
Welfare Cost Of Inflation ◽  
Special Cases ◽  
Zero Rate ◽  
Production Technologies ◽  
The Cost

Abstract The paper presents the welfare cost of inflation in a banking time economy that models exchange credit through a bank production approach. The estimate of welfare cost uses fundamental parameters of utility and production technologies. It is compared to a cash-only economy, and a [Lucas, Robert Jr. E. 2000. “Inflation and Welfare.” Econometrica 68 (2): 247–274.] shopping economy without leisure, as special cases. The paper estimates the welfare cost of a 10% inflation rate instead of zero, for comparison to other estimates, as well as the cost of a 2% inflation rate instead of a zero inflation rate. A zero rate is statutorily specified as the US inflation rate target in the 1978 Employment Act amendments. The paper provides a conservative welfare cost estimate of 2% inflation instead of zero at $33 billion a year. Estimates of the percent of government expenditure that can be financed through a 2% vs. zero inflation rate are also provided.

Welfare Cost of Inflation: Evidence from India

2018 ◽  
Vol 17 (4) ◽  
pp. 781-799
Author(s):  
Irfan Ahmad Shah ◽  
Manmohan Lal Agarwal ◽  
Srikanta Kundu
Keyword(s):  
Welfare Cost ◽  
Welfare Cost Of Inflation

On the welfare cost of inflation in Europe

2007 ◽  
Vol 14 (2) ◽  
pp. 111-113 ◽  
Author(s):  
Apostolos Serletis ◽  
Kazem Yavari
Keyword(s):  
Welfare Cost ◽  
Welfare Cost Of Inflation

AN ORDERING OF MEASURES OF THE WELFARE COST OF INFLATION IN ECONOMIES WITH INTEREST-BEARING DEPOSITS

2012 ◽  
Vol 16 (5) ◽  
pp. 732-751 ◽  
Author(s):  
Rubens Penha Cysne ◽  
David Turchick
Keyword(s):  
Closed Form ◽  
Relative Error ◽  
Welfare Cost ◽  
Opportunity Costs ◽  
Maximum Relative Error ◽  
Elementary Functions ◽  
Closed Form Solutions ◽  
Welfare Measure ◽  
Welfare Cost Of Inflation ◽  
Alternative Measures

This paper builds on Lucas [Econometrica 68 (2000), 247–274] and on Cysne [Journal of Money, Credit and Banking 35 (2003), 221–238] to derive and order six alternative measures of the welfare costs of inflation (five of them already existing in the literature) for any vector of opportunity costs. We provide examples and closed-form solutions for each welfare measure based both on log–log and on semilog money demands, whenever possible in terms of elementary functions. Estimates of the maximum relative error a researcher can incur when using any of these measures are given. Everything is done for economies with or without interest-bearing deposits.

Sign in / Sign up

Export Citation Format

Share Document