inflation rate. Evidence is also presented that suggests prices are being driven by increases in the money supply rather than by … changes in price setting behaviour. The paper additionally uses the estimated elasticity on the inflation variable to … dramatically after 2000, with inflation eventually exceeding the rate required to maximize this revenue stream. This is discussed …

We examine the responses of prices and inflation to monetary shocks in an inventory-theoretic model of money demand. We … households' money inventories leads to a partially offsetting endogenous reduction in velocity. We also show that inflation …

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 …

We study a model with repeated moral hazard where financial contracts are not fully indexed to inflation because …