Mushtaq, Siffat; Rashid, Abdul; Qayyum, Abdul - In: The Pakistan Development Review 51 (2012) 1, pp. 61-96
In this paper, we quantify welfare costs of inflation for Pakistan for the period 1960-2007 using semi-log and double …-log money demand functions. We find that the welfare gain of moving from positive inflation to zero inflation is approximately … interest rates. Moving from zero inflation to zero nominal interest rate has a substantial gain under double-log form compared …