The empirical evidence suggests that there is a significant, negative relationship between inflation and economic … monetary growth model with an explicit credit service sector to explain the observed magnitude. Since credit services are … assumed costly to produce, the consumers equate the opportunity cost of holding money with the marginal cost of credit …

The paper presents the welfare cost of inflation in a banking time economy that models exchange credit through a bank … welfare cost of a 10% inflation rate instead of zero, for comparison to other estimates, as well as the cost of a 2% inflation … rate instead of a zero inflation rate. The zero rate is specified as the US inflation rate target in the 1978 Employment …

This paper proposes that there is a dynamic relationship between interest and inflation rates that are jointly … inflation and interest rates wherein causality runs from inflation to interest rates. By contrast, the Wicksell process is the … negative relationship between the two rates with causality from interest to inflation rates. While Fisher and Wicksell theories …

A central equation for the fiscal theory of the price level (FTPL) is the government budget constraint (or “government …

to unintended self-fulfilling decelerating inflation paths and aggregate fluctuations driven by arbitrary revisions in … inflation target, and at the same time rule out the deflationary expectations that can lead an economy into a liquidity trap …

to unintended self-fulfilling decelerating inflation paths and aggregate fluctuations driven by arbitrary revisions in … inflation target, and at the same time rule out the deflationary expectations that can lead an economy into a liquidity trap. …