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 …

Two recent studies have found markedly different measures of the welfare cost of inflation in South Africa, obtained …-horizon method is more robust to alternative methods of time aggregation, and, given this the welfare cost of inflation in South … Africa for an inflation target band of 3 percent to 6 percent lies between 0.15 percent and 0.41 percent. …

cost estimates of inflation, using both Bailey’s (1956) consumer surplus approach, as well, as Lucas’s (2000) compensating … of GDP for the target-band of 3 percent to 6 percent of inflation. The paper, thus, highlights the fact that welfare cost … estimates of inflation are sensitive to the methodology used to estimate the long-run equilibrium money demand relationships. …

inflation. Using the Johansen (1991, 1995) technique, we estimate a log-log specification and a semi-log model of the above …-log money demand model. Our estimates suggest that the welfare cost of inflation for South Africa ranges between 0.34 percent … and 0.67 percent of GDP, for a band of 3 to 6 percent of inflation. Thus, it seems that the SARB’s current inflation …

been called into question by empirical research that fails to identify a relationship between money growth and inflation …

between excess money and inflation. After accounting for the turbulent periods, the equilibrium structure is reasonably stable …

deflation, coupled with strong output growth. Our study establishes a stable money demand system for broad money M2. Inflation … affects the adjustment of the system towards equilibrium, and shocks to broad money are found to lead to higher inflation in …

optimality of the Friedman rule in heterogeneous-agent economies. In the three models, zero inflation and zero nominal interest …

rouble balances and the income elasticity of money is close to unity. Inflation affects the adjustment towards equilibrium …, while broad money shocks lead to higher inflation. We also show that exchange rate fluctuations have a considerable …