gains is the reduction in the distortions that result" from the interaction of tax rules and inflation. The paper quantifies …Going from low inflation to price stability involves a short term loss (associated with the" higher unemployment rate … required to reduce the inflation) and results in a series of welfare gains" in all future years. The primary source of these …

inflation (with base drift in the price level) and price-level stability (without such base drift) are compared, and a suitable … loss function (corresponding to flexible inflation targeting) is discussed, including the index and level for the inflation … price stability. The benefits of credibility (private inflation expectations coinciding with the inflation target) are …

followed the German hyper-inflation. Significant real dislocations arose after the monetary reform; and these can be attributed … to a government policy which subsidized heavy industry through the inflation tax proceeds. The "credibility problem …

calculating the gain from price stability, the paper emphasizes the distortions caused by the interaction of inflation and capital … income taxes. Because inflation exacerbates the tax distortions that would exist even with price stability, the annual … deadweight loss of a two percent inflation rate is a surprisingly large one percent of GDP. Since the real gain from shifting to …

from public finance economics. Because inflation exacerbates tax distortions that exist even without inflation, the welfare …In a previous attempt to articulate the costs of inflation (Leigh-Pemberton (1992)), the Bank of England outlined the … following costs of a fully-anticipated inflation: - the cost of economising on real money balances -- so-called shoe …

How far can shoe-leather go in explaining the welfare cost of inflation? Using a unique set of microeconomic data on … welfare cost of inflation analogous to Bailey's triangle, but based on a rigorous microeconomic framework. The welfare cost of … inflation varies considerably within the population, but never turns out to be very large (about 0.1 percent of consumption or …

low but still positive rates of inflation, provides an adequate approximation in welfare terms to the alternative of …

We study the long-run relation between money, measured by inflation or interest rates, and unemployment. We first …

on a number of grounds which we evaluate in this paper. We show that observed inflation persistence in U.S. time series … is consistent with the absence of structural inflation stickiness as is the case in the benchmark NNS economy. We …