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The Welfare Cost of Inflation in Greece

Author

Listed:
  • Kent Kimbrough

    (Duke University, Department of Economics)

  • Ioannis Spyridopoulos

    (Duke University, Department of Economics)

Abstract

This paper measures the welfare cost of inflation for the case of Greece, using quarterly data for the period 1980Q1-1999Q4. Log-log and semi-log money demand functions are estimated using both OLS and Stock and Watson's (1993) dynamic OLS method. These estimates show the welfare cost of a 10 percent inflation rate in the range of 0.59 percent to 0.91 percent of GDP.

Suggested Citation

  • Kent Kimbrough & Ioannis Spyridopoulos, 2012. "The Welfare Cost of Inflation in Greece," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 10(1), pages 41-52.
    • Handle: RePEc:seb:journl:v:10:y:2012:i:1:p:41-52
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    File URL: http://www.asecu.gr/Seeje/issue18/kimbrough.pdf
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    References listed on IDEAS

    as
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    4. Stock, James H & Watson, Mark W, 1993. "A Simple Estimator of Cointegrating Vectors in Higher Order Integrated Systems," Econometrica, Econometric Society, vol. 61(4), pages 783-820, July.
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    6. Richard G. Anderson & Robert H. Rasche, 2001. "The remarkable stability of monetary base velocity in the United States, 1919-1999," Working Papers 2001-008, Federal Reserve Bank of St. Louis.
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    12. Serletis, Apostolos & Xu, Libo, 2021. "The welfare cost of inflation," Journal of Economic Dynamics and Control, Elsevier, vol. 128(C).
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    Cited by:

    1. Zhao, Liuyan, 2017. "The behavior of money demand in the Chinese hyperinflation," China Economic Review, Elsevier, vol. 42(C), pages 145-154.
    2. Zhao, Liuyan & Li, Lianfa, 2015. "Interest rate, money demand and seigniorage: The Chinese hyperinflation 1946–1949," China Economic Review, Elsevier, vol. 34(C), pages 169-179.

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    More about this item

    Keywords

    Welfare cost of inflation; Inflation tax; inflation;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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