Welfare costs of inflation in a dynamic
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Burkhard Heer
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Article
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2003
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Elsevier Science
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English
โ 552 KB
We present a monetary general equilibrium model with labor market frictions in the form of search unemployment which is calibrated for the US economy. Interestingly, both employment and output may even increase with the rate of in ation depending on the elasticity of labor supply. Considering the tr