Advanced Search
MyIDEAS: Login to save this paper or follow this series

The Optimal Rate of Money Creation in an Overlapping Generations Model

Contents:

Author Info

  • A. Javier Hamann

Abstract

This paper develops a large scale overlapping generations model and calibrates it for the U.S. economy. Simulations with the model show that the steady state welfare maximizing inflation rate may be positive, although the numerical results are not robust. It is also shown, however, that increases in the inflation rate are never Pareto efficient because during the transition to the new steady state at least some generations are made worse-off. Using an optimality criterion that takes into account the welfare of all generations, it is found that implementing Friedman’s rule is a Pareto superior policy, and that the efficiency gains derived from implementing such rule could be substantial.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=787
Download Restriction: no

Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 92/37.

as in new window
Length: 52
Date of creation: 01 May 1992
Date of revision:
Handle: RePEc:imf:imfwpa:92/37

Contact details of provider:
Postal: International Monetary Fund, Washington, DC USA
Phone: (202) 623-7000
Fax: (202) 623-4661
Email:
Web page: http://www.imf.org/external/pubind.htm
More information through EDIRC

Order Information:
Web: http://www.imf.org/external/pubs/pubs/ord_info.htm

Related research

Keywords: Monetary expansion; Economic models; inflation; inflation rate; money demand; monetary economics; money balances; inflation rates; money demands; price level; monetary balances; monetary aggregate; nominal interest rate; money supply; rate of inflation; real interest rate; real value; value of money; percent inflation; costs of inflation; percent inflation rate; demand for money; money base; monetary policy; increase in inflation; relative prices; monetary regimes; real money; money stock; monetary growth; real variables; monetary fund; money growth; inflation tax; range of inflation; social discount rate; monetary base; annual inflation rate; discount rate; annual inflation; aggregate demand; real rate of interest; low inflation; relative price; money market; money transfers; lower inflation; effects of inflation; money markets; monetary authority; monetary policy rule; monetary regime; aggregate demands;

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Shimasawa, Manabu & Sadahiro, Akira, 2009. "Policy reform and optimal inflation rate for Japan in computable OLG economy," Economic Modelling, Elsevier, Elsevier, vol. 26(2), pages 379-384, March.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:92/37. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Beardow) or (Hassan Zaidi).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.