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Transaction services, inflation, and welfare Author info | Abstract | Publisher info | Download info | Related research | Statistics S. Rao Aiyagari
R. Anton Braun
Zvi Eckstein
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This paper is motivated by empirical observations on the comovements of currency velocity, inflation, and the relative size of the credit services sector. We document these comovements and incorporate into a monetary growth model a credit services sector that provides services that help people economize on money. Our model makes two new contributions. First, we show that direct evidence on the appropriately defined credit service sector for the United States is consistent with the welfare cost measured using an estimated money demand schedule. Second, we provide welfare cost of inflation estimates that have some new features.
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Paper provided by Federal Reserve Bank of Minneapolis in its series Staff Report with number
241.
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Date of creation: 1998Date of revision:
Publication status: Published in Journal of Political Economy (Vol. 106, No. 6, December 1998, pp. 1274-1301)Handle: RePEc:fip:fedmsr:241Contact details of provider: Postal: 90 Hennepin Avenue, P.O. Box 291, Minneapolis, MN 55480-0291 Phone: (612) 204-5000 Web page: http://minneapolisfed.org/ More information through EDIRC
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Keywords: Inflation (Finance) Welfare Other versions of this item:
Article Paper Aiyagari, S.R. & Braum, T. & Eckstein, Z., 1995.
"Transaction Services, Inflation and Welfare ,"
Papers
27-95, Tel Aviv - the Sackler Institute of Economic Studies.
S. Rao Aiyagari & R. Anton Braun & Zvi Eckstein, 1995.
"Transaction services, inflation, and welfare ,"
Working Papers
551, Federal Reserve Bank of Minneapolis.
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Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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Cysne, Rubens Penha, 2004.
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Economics Working Papers (Ensaios Economicos da EPGE)
521, Graduate School of Economics, Getulio Vargas Foundation (Brazil).
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Policy Discussion Papers ,
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Other versions: Stefania Albanesi & V. V. Chari & Lawrence J. Christiano, 2003.
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Staff Report
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Discussion Paper Series In Economics And Econometrics
9913, Economics Division, School of Social Sciences, University of Southampton.
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"Monetary Policy and the Term Structure of Interest Rates in Japan ,"
CIRJE F-Series
CIRJE-F-252, CIRJE, Faculty of Economics, University of Tokyo.
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Benjamin Eden, 2007.
"The Friedman Rule in an Overlapping Generations Model: Social Security in Reverse ,"
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0717, Department of Economics, Vanderbilt University.
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Benjamin Eden, 2008.
"Implementing the Friedman Rule by a Government Loan Program: An Overlapping Generations Model ,"
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0804, Department of Economics, Vanderbilt University.
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Jeffrey M. Lacker, 1996.
"Stored value cards: costly private substitutes for currency ,"
Working Paper
96-03, Federal Reserve Bank of Richmond.
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Cysne, Rubens Penha, 2006.
"An Intra-Household Approach to the Welfare Costs of Inflation (Revised Version, Forthcoming 2006, Estudos Econômicos) ,"
Economics Working Papers (Ensaios Economicos da EPGE)
612, Graduate School of Economics, Getulio Vargas Foundation (Brazil).
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