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Inflation and welfare in a stochastic production economy

✍ Scribed by Nivedita Mukherji


Book ID
117717672
Publisher
Elsevier Science
Year
1996
Tongue
English
Weight
946 KB
Volume
36
Category
Article
ISSN
1062-9769

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Welfare costs of inflation in a dynamic
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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