The welfare cost of inflation with banking time
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985998%3A_____%2F20%3A00519694" target="_blank" >RIV/67985998:_____/20:00519694 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.1515/bejm-2018-0059" target="_blank" >https://doi.org/10.1515/bejm-2018-0059</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1515/bejm-2018-0059" target="_blank" >10.1515/bejm-2018-0059</a>
Alternative languages
Result language
angličtina
Original language name
The welfare cost of inflation with banking time
Original language description
The paper presents the welfare cost of inflation in a banking time economy that models exchange credit through a bank production approach. The estimate of welfare cost uses fundamental parameters of utility and production technologies. It is compared to a cash-only economy, and a [Lucas, Robert Jr. E. 2000. “Inflation and Welfare.” Econometrica 68 (2): 247–274.] shopping economy without leisure, as special cases. The paper estimates the 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. A zero rate is statutorily specified as the US inflation rate target in the 1978 Employment Act amendments. The paper provides a conservative welfare cost estimate of 2% inflation instead of zero at $33 billion a year. Estimates of the percent of government expenditure that can be financed through a 2% vs. zero inflation rate are also provided.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
<a href="/en/project/GA13-34096S" target="_blank" >GA13-34096S: Banking, Growth, and Business Cycles: the Role of Shocks, Crises, and Trade</a><br>
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2020
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
The B.E. Journal of Macroeconomics
ISSN
1935-1690
e-ISSN
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Volume of the periodical
20
Issue of the periodical within the volume
1
Country of publishing house
US - UNITED STATES
Number of pages
20
Pages from-to
20180059
UT code for WoS article
000509951700025
EID of the result in the Scopus database
2-s2.0-85059480112