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Effets bénéfiques de l'inflation dans une économie avec concurrence entre monnaies

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  • Mariana Rojas Breu

Abstract

The optimal inflation rate is an outstanding issue in monetary theory and policy. Previous work attempting to rationalize positive inflation targets chosen by central banks is subject to a major criticism, since its conclusions depend on the assumption that only one currency is available to agents. This paper presents a model in which the inflation of the domestic currency may have a welfare-improving effect, even though a less inflationary currency exists and no costs in using it are assumed Classification JEL : E40, E51

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Article provided by Presses de Sciences-Po in its journal Revue économique.

Volume (Year): Volume 61 (2010)
Issue (Month): 3 ()
Pages: 657-666

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Handle: RePEc:cai:recosp:reco_613_0657

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