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Divisia Index, Inflation and Welfare

Author

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  • Rubens Penha Cysne

    (FGV/RJ)

Abstract

This work addresses a usual criticism in the literature of the welfare costs of inflation, related to the tact that some items in the relevant definition of money pay interest, while others do not. We show that the problem can be solved by using a Divisia index of monetary services as the welfare measure.
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Suggested Citation

  • Rubens Penha Cysne, 2001. "Divisia Index, Inflation and Welfare," Anais do XXIX Encontro Nacional de Economia [Proceedings of the 29th Brazilian Economics Meeting] 020, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    • Handle: RePEc:anp:en2001:020
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    File URL: http://www.anpec.org.br/encontro2001/artigos/200102180.pdf
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