The cost of the FED maintaining a low target level of inflation is measured by Lucas (2000) and Ireland (2009) as the … welfare cost of inflation based on money demand. Their estimates require stability of the money demand function. Ireland finds … inflation to the post-Volcker period …

of inflation (five of which already existing in the literature) for any vector of opportunity costs. The ordering of the …

Empirical studies of the shoe-leather costs of inflation are typically computed using M1 as a measure of money. Yet … moderate value of the inflation rate, thereby justifying a deviation from the Friedman rule in favor of the Fed's current …

to money markets decrease the welfare cost of inflation substantially …

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