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 …

its money demand properties and determine the optimal long-run inflation rate that trades off the New Keynesian distortion …

event on the properties of the transmission of shocks between Argentina and Mexico. The paper shows that there is a …Mexico was upgraded from non-investment to investment grade in March of 2000. This paper examines the impact of this … identification procedure based on conditional heteroskedasticity (ARCH) that solves the problem of estimation in a linear …

The paper argues that Lucas overestimates the Friedman-Bailey type of welfare cost of inflation and neglects other … of Lucas' estimate. The neglected welfare effects of inflation include an adverse Baumol-Tobin effect on growth and … between inflation, relative prices and structural change …

In this paper I attempt to clarify the nature of the losses associated with inflation within a conventional model of a … competitive economy. I shall argue that were inflation fully anticipated, it would be "almost neutral" provided (a) that the tax … States). However, unanticipated inflation may have significant effects …

sustained inflation are small relative to the costs of unemployment. If a temporary reduction in unemployment causes a permanent … increase in inflation, the present value of the resulting future welfare costs may well exceed the temporary short-run gain …. Previous analyses have underestimated the cost of a permanent increase in the inflation rate because they have ignored the …

banking sector. Taking these effects into account, a one percentage point increase in inflation has a welfare cost of 0 …