DAMJANOVIC, TATIANA; NOLAN, CHARLES - In: Journal of Money, Credit and Banking 42 (2010) 2-3, pp. 503-519
What is the seigniorage-maximizing level of inflation? Three models' formulae for the seigniorage-maximizing inflation rate (SMIR) are compared. A sticky-price model prescribes a somewhat lower SMIR to Cagan's formula and a variant of a flex-price model due to Kimbrough (2006). The models differ...