The empirical evidence suggests that there is a significant, negative relationship between inflation and economic … monetary growth model with an explicit credit service sector to explain the observed magnitude. Since credit services are … assumed costly to produce, the consumers equate the opportunity cost of holding money with the marginal cost of credit …

payment mechanisms can robustly explain major facets of the long run inflation experience. A negative inflation …. Undisclosed previously, this link helps fill out the intuition of how the inflation experience can be plausibly explained in a … robust fashion with a model extended to include credit as a payment mechanism. …

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 …

This paper proposes that there is a dynamic relationship between interest and inflation rates that are jointly … inflation and interest rates wherein causality runs from inflation to interest rates. By contrast, the Wicksell process is the … negative relationship between the two rates with causality from interest to inflation rates. While Fisher and Wicksell theories …

, the present study considers the theory developed by Dholakia (2020) to estimate threshold inflation that maximizes steady …Threshold inflation that maximizes long-term growth in an economy is dependent on fiscal deficit (FD) and current … account deficit (CAD). Since the existing empirical literature on threshold inflation lacks a robust theoretical framework …

to unintended self-fulfilling decelerating inflation paths and aggregate fluctuations driven by arbitrary revisions in … inflation target, and at the same time rule out the deflationary expectations that can lead an economy into a liquidity trap. …

A central equation for the fiscal theory of the price level (FTPL) is the government budget constraint (or “government …