A New Approach to Inflation Aversion

Gaowang Wang and Heng-Fu Zou ()
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Gaowang Wang: Wuhan University

No 471, CEMA Working Papers from China Economics and Management Academy, Central University of Finance and Economics

Abstract: This paper reexamines monetary non-superneutrality and the optimality of the optimum quantity of money in the money-in-utility Sidrauski model with endogenous fluctuations of the time preference by introducing in?ation aversion. It is shown that the long-run superneutrality of the standard Sidrauski model does not hold, and Friedman's optimum quantity of money is not optimal.

Keywords: Inflation Aversion; Endogenous Time Preference; Monetary Superneutrality; Optimum Quantity of Money (search for similar items in EconPapers)
JEL-codes: E31 E5 O41 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2010-11
New Economics Papers: this item is included in nep-cba, nep-mac, nep-mon and nep-upt
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Published in Economic Modelling, Jul 2011, pages 1802-1807

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Persistent link: https://EconPapers.repec.org/RePEc:cuf:wpaper:471

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