I apply mechanism design to quantify the cost of inflation that can be attributed to monetary frictions alone. In an … moderate inflation is zero. This result is robust to different assumptions regarding the observability of money holdings, the …

Substantial changes in price inflation rate have serious economic consequences on the welfare of consumers in an … welfare cost of inflation (WCI), employing well-established theory of money demand for the purpose. To address the issue more … demand than theirs counterparts. It is found that a decrease in inflation rate from 15 to 5 percent amounts to an annual …

Although accommodative policies and widespread indexation may account for the persistence of high inflation, they … cannot explain changes in the inflation rate. This paper examines the causes of such changes for the high-inflation episodes … immediately preceding the recent “heterodox” attempts at stabilization in Argentina, Brazil, and Israel. An attempt is made to …