Title of article
Liquidity,redistribution,andthewelfarecostofinflation$
Author/Authors
Jonathan Chiu، نويسنده , , MiguelMolico، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2010
Pages
11
From page
428
To page
438
Abstract
The long-runwelfarecostsofinflationarestudiedinamicro-foundedmodelwith
tradingfrictionsandcostlyliquiditymanagement.Bymodellingtheliquiditymanage-
mentdecision,themodelendogenizestheresponsesofvelocity,output,thedegreeof
marketsegmentation,andthedistributionofmoney.Comparedtothetraditional
estimatesbasedonarepresentativeagentmodel,thewelfarecostsofinflationare
significantlysmallerduetodistributionaleffectsofinflation.Thewelfarecostof
increasinginflationfrom0%to10%is0.62%ofconsumptionfortheUSeconomy.
Furthermore,thewelfarecostisgenerallynon-linearintheinflationrate
Keywords
InflationMonetary policySearchWelfare
Journal title
Journal of Monetary Economics
Serial Year
2010
Journal title
Journal of Monetary Economics
Record number
846402
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