Welfare characterization of monetary-applied models and three implications
Autor(a) principal: | |
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Data de Publicação: | 2000 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Institucional do FGV (FGV Repositório Digital) |
Texto Completo: | http://hdl.handle.net/10438/1005 |
Resumo: | This paper demonstrates that the applied monetary models - the Sidrauski-type models and the cash-in-advance models, augmented with a banking sector that supplies money substitutes services - imply trajectories which are Pareto-Optimum restricted to a given path of the real quantity of money. As a consequence, three results follow: First, Bailey’s formula to evaluate the welfare cost of inflation is indeed accurate, if the longrun capital stock does not depend on the inflation rate and if the compensate demand is considered. Second, the relevant money demand concept for this issue - the impact of inflation on welfare - is the monetary base. Third, if the long-run capital stock depends on the inflation rate, this dependence has a second-order impact on welfare, and, conceptually, it is not a distortion from the social point of view. These three implications moderate some evaluations of the welfare cost of the perfect predicted inflation. |
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Pessôa, Samuel de AbreuEscolas::EPGEFGV2008-05-13T15:46:32Z2010-09-23T18:57:41Z2008-05-13T15:46:32Z2010-09-23T18:57:41Z2000-04-010104-8910http://hdl.handle.net/10438/1005This paper demonstrates that the applied monetary models - the Sidrauski-type models and the cash-in-advance models, augmented with a banking sector that supplies money substitutes services - imply trajectories which are Pareto-Optimum restricted to a given path of the real quantity of money. As a consequence, three results follow: First, Bailey’s formula to evaluate the welfare cost of inflation is indeed accurate, if the longrun capital stock does not depend on the inflation rate and if the compensate demand is considered. Second, the relevant money demand concept for this issue - the impact of inflation on welfare - is the monetary base. Third, if the long-run capital stock depends on the inflation rate, this dependence has a second-order impact on welfare, and, conceptually, it is not a distortion from the social point of view. These three implications moderate some evaluations of the welfare cost of the perfect predicted inflation.engFundação Getulio Vargas. Escola de Pós-graduação em EconomiaEnsaios Econômicos;378MoneyWelfareInflationFinancial servicesEconomiaMoeda - Modelos matemáticosWelfare characterization of monetary-applied models and three implicationsinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articlereponame:Repositório Institucional do FGV (FGV Repositório Digital)instname:Fundação Getulio Vargas (FGV)instacron:FGVinfo:eu-repo/semantics/openAccessTHUMBNAIL1225.pdf.jpg1225.pdf.jpgGenerated Thumbnailimage/jpeg4304https://repositorio.fgv.br/bitstreams/c531716f-4982-4fcb-9917-151596ff2e25/downloadc371108f5cc5ed591f4e4439df5c0e4aMD59TEXT1225.pdf.txt1225.pdf.txtExtracted texttext/plain72842https://repositorio.fgv.br/bitstreams/c368d44f-170a-4618-975c-358c4d623260/download7f3ad5ef3eb28a870f5781067fe2417cMD58ORIGINAL1225.pdfapplication/pdf511437https://repositorio.fgv.br/bitstreams/7cacf7f4-55b0-45c5-9e2a-a9a2329d9906/download96ea8ab3657256e6b2cb22eaab9c4238MD5310438/10052023-11-08 16:33:24.015open.accessoai:repositorio.fgv.br:10438/1005https://repositorio.fgv.brRepositório InstitucionalPRIhttp://bibliotecadigital.fgv.br/dspace-oai/requestopendoar:39742023-11-08T16:33:24Repositório Institucional do FGV (FGV Repositório Digital) - Fundação Getulio Vargas (FGV)false |
dc.title.eng.fl_str_mv |
Welfare characterization of monetary-applied models and three implications |
title |
Welfare characterization of monetary-applied models and three implications |
spellingShingle |
Welfare characterization of monetary-applied models and three implications Pessôa, Samuel de Abreu Money Welfare Inflation Financial services Economia Moeda - Modelos matemáticos |
title_short |
Welfare characterization of monetary-applied models and three implications |
title_full |
Welfare characterization of monetary-applied models and three implications |
title_fullStr |
Welfare characterization of monetary-applied models and three implications |
title_full_unstemmed |
Welfare characterization of monetary-applied models and three implications |
title_sort |
Welfare characterization of monetary-applied models and three implications |
author |
Pessôa, Samuel de Abreu |
author_facet |
Pessôa, Samuel de Abreu |
author_role |
author |
dc.contributor.unidadefgv.por.fl_str_mv |
Escolas::EPGE |
dc.contributor.affiliation.none.fl_str_mv |
FGV |
dc.contributor.author.fl_str_mv |
Pessôa, Samuel de Abreu |
dc.subject.eng.fl_str_mv |
Money Welfare |
topic |
Money Welfare Inflation Financial services Economia Moeda - Modelos matemáticos |
dc.subject.por.fl_str_mv |
Inflation Financial services |
dc.subject.area.por.fl_str_mv |
Economia |
dc.subject.bibliodata.por.fl_str_mv |
Moeda - Modelos matemáticos |
description |
This paper demonstrates that the applied monetary models - the Sidrauski-type models and the cash-in-advance models, augmented with a banking sector that supplies money substitutes services - imply trajectories which are Pareto-Optimum restricted to a given path of the real quantity of money. As a consequence, three results follow: First, Bailey’s formula to evaluate the welfare cost of inflation is indeed accurate, if the longrun capital stock does not depend on the inflation rate and if the compensate demand is considered. Second, the relevant money demand concept for this issue - the impact of inflation on welfare - is the monetary base. Third, if the long-run capital stock depends on the inflation rate, this dependence has a second-order impact on welfare, and, conceptually, it is not a distortion from the social point of view. These three implications moderate some evaluations of the welfare cost of the perfect predicted inflation. |
publishDate |
2000 |
dc.date.issued.fl_str_mv |
2000-04-01 |
dc.date.accessioned.fl_str_mv |
2008-05-13T15:46:32Z 2010-09-23T18:57:41Z |
dc.date.available.fl_str_mv |
2008-05-13T15:46:32Z 2010-09-23T18:57:41Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
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info:eu-repo/semantics/article |
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article |
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publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10438/1005 |
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0104-8910 |
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0104-8910 |
url |
http://hdl.handle.net/10438/1005 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
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Ensaios Econômicos;378 |
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info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.publisher.none.fl_str_mv |
Fundação Getulio Vargas. Escola de Pós-graduação em Economia |
publisher.none.fl_str_mv |
Fundação Getulio Vargas. Escola de Pós-graduação em Economia |
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