IMF Staff papers : Volume 38 No. 4.

The welfare effects of mitigating the costs of inflation are examined. In a model where money reduces transactions costs, a fall in inflation costs is equivalent to financial innovation. This can be caused by paying interest on deposits, indexing money, or 'dollarizing.' Results indicate t...

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Detalles Bibliográficos
Autor Corporativo: International Monetary Fund. Research Dept
Formato: Revista
Lenguaje:English
Publicado: Washington, D.C. : International Monetary Fund, 1991.
Colección:IMF Staff Papers; IMF Staff Papers ; No. 1991/003
Acceso en línea:Full text available on IMF
Descripción
Sumario:The welfare effects of mitigating the costs of inflation are examined. In a model where money reduces transactions costs, a fall in inflation costs is equivalent to financial innovation. This can be caused by paying interest on deposits, indexing money, or 'dollarizing.' Results indicate that financial innovation raises welfare in low-inflation economies while reducing it in high-inflation economies because of the offsetting indirect effect of higher inflation to finance the budget.
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Descripción Física:1 online resource (276 pages)
Formato:Mode of access: Internet
ISSN:1020-7635
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