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 …

S. 1-11: Hutton, Graham: Unfreedom and inflation. An introductory essay …

This paper studies the steady-state costs of inflation in a general-equilibrium model with real per capita output … growth and staggered nominal price and wage contracts. Our analysis shows that trend inflation has important effects on the … important even for low values of trend inflation. Further, we show that nominal wage contracting is quantitatively more …