Money and Costly Credit
evidence. Compared to an economy without credit, allowing credit as a means of payment has three implications:  it lowers money demand at low to moderate inflation rates;  it improves society's welfare when the inflation rate exceeds a specific threshold; and  it can raise the welfare cost of inflation for some reasonable values of the credit cost parameter.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Postal: Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA|
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