• Title of article

    Financialsophisticationandthedistributionofthewelfare cost ofinflation

  • Author/Authors

    PaolaBoel، نويسنده ,

  • Issue Information
    روزنامه با شماره پیاپی سال 2008
  • Pages
    11
  • From page
    968
  • To page
    978
  • Abstract
    The welfarecostofanticipatedinflationisquantifiedinacalibratedmodeloftheU.S. economythatexhibitstractableequilibriumdispersioninwealthandearnings.Inflation doesnotgeneratelargelossesinsocietalwelfare,yetitsimpactvariesnoticeablyacross segmentsofsocietydependingalsoonthefinancialsophisticationoftheeconomy.If moneyistheonlyasset,theninflationmostlyhurtsthewealthierandmoreproductive agents, whilethosepoorerandlessproductivemayevenbenefitfrominflation.The converse holdsinamoresophisticatedfinancialenvironmentwhereagentscaninsure againstconsumptionriskwithassetsotherthanmoney
  • Keywords
    MoneyHeterogeneityFriedmanruleTradefrictionsCalibration
  • Journal title
    Journal of Monetary Economics
  • Serial Year
    2008
  • Journal title
    Journal of Monetary Economics
  • Record number

    846345