TY  - JOUR
TI  - Inflation, Welfare, and the Time-Costs of Transacting
T2  - Canadian Journal of Economics
IS  - 1
KW  - consumption
KW  - employment
KW  - growth
KW  - inflation
KW  - time-costs of transacting
KW  - welfare
AB  - The costs of inflation are assessed using an endogenous growth 
macroeconomic model in which money reduces the time-costs of 
transacting. Inflation reduces growth in the model, which supports 
recent empirical evidence. Although simulations show time-costs to be 
small, inflation raises these costs and affects consumption, 
employment, and growth margins, implying greater welfare losses than 
generally found in the literature. The authors estimate welfare gains 
of 2 percent of GNP for reductions in inflation rates from 5 percent 
to zero when seignorage revenues are replaced with distortional 
taxes. Optimal inflation rates are negative. 
AU  - Love, David R.F.
AU  - Wen, Jean-Francois
UR  - http://ecsocman.hse.ru/text/16882814/
PY  - 1999
SP  - 171-194 
M2  - 171
VL  - 32 
SN  - 
N1  - 
LA  - EN
CY  - 
PB  - 
M3  - 
LB  - 
VL  - 
ER  -