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 …

the inflation rate, the deviation in real GDP (Gross Domestic Product), the deviation in money supply, the deviation in … weight to the deviation in unemployment rate, and moderate weights are assigned to the deviation in the inflation rate, the … deviation in real GDP, the deviation in money supply, and the deviation in the money velocity. The corresponding sum of squares …

into account leads to ambiguous effects w.r.t. to the impact of capital as well as inflation risk, thus contradicting …. The results reveal that U.S. households increase their demand for money in response to positive changes in inflation and …

ambiguous effects w.r.t. to the impact of capital market risk as well as inflation risk, which is due to the interplay of … response to positive changes in inflation risk and capital market risk, respectively, with both effects lasting permanently. …