Boulware, Karl David; Reed, Robert R.; Ume, Ejindu - In: Economics Letters 120 (2013) 2, pp. 267-270
Recent work by Laibson (1997) identifies that individuals’ time discount factors evolve over time. This leads to a time-inconsistency problem in which savings are distorted. This paper studies the long-run effects of inflation in the presence of a time-inconsistency problem.