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The welfare cost of inflation in Italy

Author

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  • Apostolos Serletis
  • Kazem Yavari

Abstract

This paper follows Lucas (2000), and Serletis and Yavari (2004) and estimates the welfare cost of inflation in Italy. It uses recent advances in the field of applied econometrics to estimate the interest elasticity of money demand in Italy and reports welfare cost estimates close to those reported by Serletis and Yavari for Canada and the USA, but an order of magnitude smaller than those reported by Bullard and Russell (2004) for the US economy.

Suggested Citation

  • Apostolos Serletis & Kazem Yavari, 2005. "The welfare cost of inflation in Italy," Applied Economics Letters, Taylor & Francis Journals, vol. 12(3), pages 165-168.
    • Handle: RePEc:taf:apeclt:v:12:y:2005:i:3:p:165-168
    DOI: 10.1080/1350485042000318402
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    References listed on IDEAS

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    1. Robert E. Lucas, 2001. "Inflation and Welfare," International Economic Association Series, in: Axel Leijonhufvud (ed.), Monetary Theory as a Basis for Monetary Policy, chapter 4, pages 96-142, Palgrave Macmillan.
    2. Serletis, Apostolos & Yavari, Kazem, 2004. "The welfare cost of inflation in Canada and the United States," Economics Letters, Elsevier, vol. 84(2), pages 199-204, August.
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    Cited by:

    1. Irfan Ahmad Shah & Manmohan Lal Agarwal & Srikanta Kundu, 2019. "Welfare Cost of Inflation: Evidence from India," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(4), pages 781-799, December.

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