There is now a substantial theoretical literature arguing that inflation impedes financial deepening. Furthermore, it … has been hypothesized that the relationship is a nonlinear one, in that there is a threshold level of inflation below … which inflation has a positive effect on financial depth, but above which the effect turns negative. Using a large cross …

Empirical data show that real wages fall sharply during periods of high inflation. This paper suggests a simple general …-in-advance constraint. In this setting, inflation reduces real wages through (1) a decline of the capital stock, and (2) a shift in relative … may contribute to rising poverty during periods of high inflation …

expected inflation rate, in an environment of asymmetric information. Policymaking is endogenous and the public learns … rationally. There are two main findings. First, there is a “honeymoon effect” after the regime change, where inflation is lower …

This paper examines the welfare effects of mitigating the costs of inflation. In a simple model where money reduces … transaction costs, a fall in the costs of inflation is equivalent to financial innovation. This can be caused by paying interest … on deposits, indexing money, or “dollarizing.” Results indicate that financial innovation raises welfare in low inflation …

transmission mechanism through which domestic policies affected the dynamics of inflation was relatively small during a period of … high but relatively stable inflation (January 1978-85), it became an important factor in the inflation process during the …

estimated revenue-eroding effects of inflation within the standard model of inflationary finance. The evidence indicates a wide … the sample countries, appears to have substantially offset gains from the inflation tax, thereby severely restricting the …

In light of the persistence of moderate inflation in many transition economies, this paper analyzes whether inflation …. Using a new database for 21 countries, the effect of relative price variability on inflation is estimated within a framework … controlling for nominal and real shocks. Money and wage growth were the most important determinants of inflation; relative price …

This paper examines the relative importance of monetary growth and exchange rate depreciation as causes of inflation in … autoregression (VAR) analysis suggest that both monetary expansion and exchange rate adjustments cause inflation in a number of these … countries. However, the failure of the tests to attribute the bulk of the variance in inflation in most of the countries to …

combining the public finance view of inflation with multiple exchange markets. To account for the experience of many developing … rates were often announced as temporary. The paper shows that the dynamic response of inflation to the reform markedly … differ whether the announcement is credible or not. The paper also compares the response of inflation under a fixed crawl of …