Inflation and Efficiency in a Search Economy

We present a model in which purely monetary inflation systematically affects efficiency, welfare, and relative prices. The model focuses on the microeconomics of trade in search markets under inflation. Inflation, by increasing the cost of holding money, undermines the market's ability to sustain long-term customer relationships. Because those relationships generate the most efficient transactions patterns, overall welfare unambiguously declines

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Year of publication:	2003
Authors:	Fershtman, Chaim ; Fishman, Arthur ; Simhon, Avi
Publisher:	[S.l.] : SSRN
Subject:	Inflation \| Suchtheorie \| Search theory \| Arbeitsmarkt \| Labour market

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Extent:	1 Online-Ressource (18 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	In: International Economic Review, Vol. 44, No. 1, pp. 205-222, February 2003
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014089574