WeIfare costs of inflation the case for interest-bearing money and empiricaI Estimates for Brazil

We provide in this paper a closed fonn for the Welfare Cost of Inflation which we prove to be closer than Bailey's expression to the correct solution of the corresponding non-separable differential equation. Next, we extend this approach to an economy with interest-bearing money, once again pre...

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Detalles Bibliográficos
Autores: Simonsen, Mario Henrique, Cysne, Rubens Penha
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:1994
País:Brasil
Institución:Fundação Getulio Vargas (FGV)
Repositorio:Repositório Institucional do FGV (FGV Repositório Digital)
Idioma:inglés
OAI Identifier:oai:repositorio.fgv.br:10438/12342
Acceso en línea:http://hdl.handle.net/10438/12342
Access Level:acceso abierto
Palabra clave:Inflation, Near-Money, Welfare Cost.
Economia
Inflação - Brasil
Descripción
Sumario:We provide in this paper a closed fonn for the Welfare Cost of Inflation which we prove to be closer than Bailey's expression to the correct solution of the corresponding non-separable differential equation. Next, we extend this approach to an economy with interest-bearing money, once again presenting a better appoximation than the one given by Bailey's approach. Finally, empirical estimates for Brazil are presented.