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Welfare cost of inflation in a stochastic balanced growth model

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dc.contributor.authorSel Dibooglu
dc.contributor.authorTuralay Kenc
dc.contributor.authorKenc, Turalay
dc.date.accessioned2022-05-29T06:28:07Z
dc.date.available2022-05-29T06:28:07Z
dc.date.issued2009
dc.description.abstractThere is a large and growing literature on the welfare cost of inflation. However, work in this area tend to find moderate estimates of welfare gains. In this paper we reexamine welfare costs of inflation within a stochastic general equilibrium balanced growth model paying a particular attention to recursive utility, portfolio balance effects, and monetary volatility and monetary policy uncertainty. Our numerical analysis shows that a monetary policy that brings down inflation to the optimum level can have substantial welfare effects. Portfolio adjustment effects seem to be the dominant factor behind the welfare gains.en_US
dc.identifier.citationDibooglu, S. & Kenc, T. (2009). Welfare cost of inflation in a stochastic balanced growth model. Economic Modelling, 26 (3), pp. 650-658.en_US
dc.identifier.doihttps://doi.org/10.1016/j.econmod.2009.01.011
dc.identifier.issn0264-9993
dc.identifier.urihttps://ikr.inceif.org/handle/INCEIF/3566
dc.languageEnglish
dc.language.isoengen_US
dc.publisherElsevier B.V.en_US
dc.rights2009. Elsevier B.V
dc.sourceSEDONA
dc.subjectInflationen_US
dc.subjectMonetary policyen_US
dc.subjectStochastic growth modelsen_US
dc.titleWelfare cost of inflation in a stochastic balanced growth modelen_US
dc.typeJournal Articleen_US
dlc.maintopicConventional financeen_US
dspace.entity.typePublication
ikr.doctypeScholarly Works
ikr.topic.maintopicConventional financeen_US
relation.isAuthorOfPublication7bdf745e-8829-456f-9e4f-fcc43b78d818
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