Staff Report 134

A Discussion of Cooley and Hansen’s “Welfare Costs of Moderate Inflations”

Randall Wright | Consultant

Published February 1, 1991

This is a note on the analysis of inflation and taxation in Cooley and Hansen’s cash-in-advance economy described in their paper “The Welfare Costs of Moderate Inflations.” Basic issues concerning the costs and consequences of inflation are considered, their results are assessed, and some directions for extensions are suggested.

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