information for future output and inflation because of its impact on financial spreads. And so we decompose broad money into …

"explains", to some extent, inflation. Modern macroeconomic theory, however, considers inflation targeting central banks which ….e. credit creation. A simple NKM model with fiat money demonstrates that money growth is tied to inflation, changes of output … and interest rate changes. The latter are determined by inflation and output gap if we consider an inflation …

This paper studies the welfare costs and the redistributive effects of inflation in the presence of idiosyncratic … money demand and the distribution of money holdings across households, and study the effects of inflation under the implied … inflation are on average 40% smaller compared to a complete markets, representative agent economy, and that inflation induces …

their consumption which we interpret as the hot potato effect of inflation. We give an example where money holdings do not …