establishments' productivities. Inflation distorts aggregate productivity through firm entry dynamics. The model is calibrated to the …We analyze the welfare cost of inflation in a model with cash-in-advance constraints and an endogenous distribution of … United States economy and the long-run equilibrium properties are compared at low and high inflation. We find that increasing …

establishments' productivities. Inflation distorts aggregate productivity through firm entry dynamics. The model is calibrated to the … in productivity is not innocuous: it leads to a doubling of the welfare cost of inflation. -- Firm dynamics … ; productivity ; inflation ; welfare …