The Welfare Cost of Inflation in General Equilibrium
The Welfare Cost of Inflation in General Equilibrium
复制标题
一般均衡下通货膨胀的福利成本
DOI：
10.2139/ssrn.2123621
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发表时间：
1994
期刊：
影响因子：
--
通讯作者：
P. Ireland
中科院分区：
文献类型：
--
作者：
M. Dotsey;P. Ireland
This paper presents a general equilibrium monetary model in which inflation distorts a variety of marginal decisions. Although individually none of the distortions is very large, they combine to yield substantial welfare cost estimates. A sustained 4% inflation like that experienced in the U.S. since 1983 costs the economy the equivalent of 0.41% of output per year when currency is identified as the relevant definition of money and over 1% of output per year when M1 is defined as money. The results illustrate how the traditional, partial equilibrium approach can seriously underestimate the true cost of inflation.
