labor costs) to increases in the nominal rate of interest. Thus the model is characterized by local instability of the wage …

. To illustrate, when cash prices are equally distorted in both models equally large welfare costs of inflation are …

The effects of inflation are considered for a small open economy with overlapping generations and a cash …

The effects of inflation are worked out for a small open economy with Cash-in-Advance (CIA) constraints on bond … purchases. If all transactions are subject to CIA constraints, an increase in the inflation rate will reduce savings, bringing …, an increase in the inflation rate will encourage investment and reduce savings, bringing about a current account deficit …

, in particular by capturing the procyclic movements of monetary aggregates, inflation and interest rates. And its …

The effect of inflation on the capital stock is considered in an overlapping generations framework with a Cash …

-in-advance constraints both in the factor markets and in the good markets. Simulations show that common money inflation in the union have …