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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| Format: | Journal |
| Language: | English |
| Published: |
Washington, D.C. :
International Monetary Fund,
1991.
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| Series: | IMF Staff Papers; IMF Staff Papers ;
No. 1991/003 |
| Online Access: | Full text available on IMF |
| Summary: | 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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| Item Description: | <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required |
| Physical Description: | 1 online resource (276 pages) |
| Format: | Mode of access: Internet |
| ISSN: | 1020-7635 |
| Access: | Electronic access restricted to authorized BRAC University faculty, staff and students |