The Inflation Tax in a Real Business Cycle Model

The Inflation Tax in a Real Business Cycle Model

Money is incorporated into a real business cycle model using a cash-in-advance constraint. The model economy is used to analyze whether the business cycle is different in high inflation and low inflation economies and to analyze the impact of variability in the growth rate of money. In addition, the...

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Veröffentlicht in:The American economic review 1989-09, Vol.79 (4), p.733-748
Hauptverfasser: Cooley, Thomas F., Hansen, Gary D.
Format: Artikel
Sprache:eng
Schlagworte:
Business & industry
Business cycles
Capital stocks
Economic conditions
Economic fluctuations
Economic growth
Economic growth rate
Economic modeling
Economic models
Economic theory
Economics
Economy
GNP
Gross National Product
Inflation
Inflation rates
Inflation tax
Money
Money supply
Statistical analysis
Steady state economies
Taxation economics
Taxes
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Beschreibung
Zusammenfassung:Money is incorporated into a real business cycle model using a cash-in-advance constraint. The model economy is used to analyze whether the business cycle is different in high inflation and low inflation economies and to analyze the impact of variability in the growth rate of money. In addition, the welfare cost of the inflation tax is measured and the steady-state properties of high and low inflation economies are compared.
ISSN:0002-8282
1944-7981