Documentos de trabajo
WeIfare costs of inflation the case for interest-bearing money and empiricaI Estimates for Brazil
Fecha
1994-09-22Autor
Simonsen, Mario Henrique
Cysne, Rubens Penha
Institución
Resumen
We provide in this paper a closed fonn for the Welfare Cost of Inflation which we prove to be closer than Bailey's expression to the correct solution of the corresponding non-separable differential equation. Next, we extend this approach to an economy with interest-bearing money, once again presenting a better appoximation than the one given by Bailey's approach. Finally, empirical estimates for Brazil are presented.