Costs of inflation
In: Handbook of Monetary Economics
We review theoretical and empirical analyses of the costs of inflation. Part 2 of the paper examines microeconomic models in which inflation is perfectly anticipated, and viewed as the only distortion in the economy or as one of many distortionary taxes, which may or may not be chosen optimally. Part 3 turns to stochastic models with a more macroeconomic orientation, in which inflation is imperfectly perceived, or where real costs of price adjustment cause agents not to adjust fully in the presence of inflation. Part 4 discusses empirical work, which largely focuses on the relationship between the level of inflation, its variability, its unpredictability, and variation in relative prices.
(This abstract was borrowed from another version of this item.)
|This chapter was published in: ||This item is provided by Elsevier in its series Handbook of Monetary Economics with number
2-19.||Handle:|| RePEc:eee:monchp:2-19||Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/bookseriesdescription.cws_home/BS_HE/description|
When requesting a correction, please mention this item's handle: RePEc:eee:monchp:2-19. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.