A New Approach to Inflation Aversion
This paper reexamines monetary non-superneutrality and the optimality of the optimum quantity of money in the money-in-utility Sidrauski model with endogenous fluctuations of the time preference by introducing in?ation aversion. It is shown that the long-run superneutrality of the standard Sidrauski model does not hold, and Friedman's optimum quantity of money is not optimal.
|Date of creation:||Nov 2010|
|Publication status:||Published in Economic Modelling, Jul 2011, pages 1802-1807|
|Contact details of provider:|| Web page: http://cema.cufe.edu.cn/|
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