The welfare cost of anticipated inflation is quantified in a calibrated model of the U.S. economy that exhibits … tractable equilibrium dispersion in wealth and earnings. Inflation does not generate large losses in societal welfare, yet its … impact varies noticeably across segments of society depending also on the financial sophistication of the economy. If money …

risk with both money and nominal government bonds, but all trades must be monetized. We demonstrate that a deflationary … the return money can pay. The efficient allocation can be sustained when bonds have positive yields and – under certain …

On the example of recent coin emissions the author explores the possibilities of managing this form of money and …

Taking as an example recent Hungarian currency, it is concluded that the functions of coins and paper money are related … found. In this way it is argued that these money forms have their future and raison d'être, thus they need to be further … created and managed. Hungarian contemporary practice of money emission is given as a good example of various significant …

A simple asset market segmentation model is constructed to study the relationship between inflation and theft when … money is the only medium of exchange. In equilibrium, money is nonneutral and monetary policy has asymmetric effects on … theft, real money holding, and consumption. The distributional effects persist over periods and the liquidity effect may …

Our experiments refine and extend the work of Fehr and Tyran (2001), who suggest that money illusion can contribute … points and cognitive load we find that participants exhibit no first order money illusion, though second order money illusion … finding the NE among 1800 payoffs. Second order money illusion appears to explain the persistent asymmetry between price …

control over money market interest rates. With money market conditions increasingly influencing effective commercial lending … aggregate economic activity influences inflation. Hence, greater use of interest rates in implementing monetary policy would … inflation objective as the nominal anchor. This paper relates to the 2010 OECD Economic Review of China (www …

This paper advances three fundamental propositions regarding money: (1) As R. W. Clower (1965) famously put it, money … buys goods and goods buy money, but goods do not buy goods. (2) Money is always debt; it cannot be a commodity from the … possible. These three propositions are used to build a theory of money that is linked to common themes in the heterodox …