establishments' productivities. Inflation distorts aggregate productivity through firm entry dynamics. The model is calibrated to the … in productivity is not innocuous: it leads to a doubling of the welfare cost of inflation. …We analyze the welfare cost of inflation in a model with cash-in-advance constraints and an endogenous distribution of …

. In a positive inflation environment, however, both real spot and real forward rates might well become negative, but …

Output growth, investment and the real interest rate in long run evidence tend to be negatively affected by inflation …. Theoretically, inflation acts as a human capital tax that decreases output growth and the real interest rate, but increases the …. Inflation then decreases the investment rate, and still decreases both output growth and real interest up to some moderately …

Output growth, investment and the real interest rate are all found empirically to be negatively affected by inflation …. But a seeming puzzle arises of opposite Tobin-like inflation effects because theory indicates a negative Tobin effect when … investment falls and a positive Tobin effect when the real interest rate rises. We define inflation's Tobin effect more …

last two years, can well be explained. Alongside the more traditional macroeconomic determinants like core inflation …