(2003), 221–238] to derive and order six alternative measures of the welfare costs of inflation (five of them already …

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 …

, for example. I show that fixed periods underestimate the welfare cost of inflation. I use a model in which agents choose … inflation increases from 0.1 percent of income with fixed periods to 1 percent with optimal periods. The results are robust to …

The literature on the welfare costs of inflation universally assumes that the many-person household can be treated as a … function and, therefore, the welfare costs of inflation. Second, more importantly, we derive sufficient conditions under which …-equilibrium measure of the welfare costs of inflation can be obtained as a first-order approximation of the general-equilibrium welfare …

The paper presents the welfare cost of inflation in a banking time economy that models exchange credit through a bank … welfare cost of a 10% inflation rate instead of zero, for comparison to other estimates, as well as the cost of a 2% inflation … rate instead of a zero inflation rate. The zero rate is specified as the US inflation rate target in the 1978 Employment …