On the Consumers' Surplus of Money Holders and the Measuring of Money's Services

Charles Maling

Journal of Money, Credit and Banking, 1987, vol. 19, issue 4, 469-83

Abstract: This paper begins by examining the different consumer-surplus measures which are implied by the two alternative prices used in constructing money demand schedules: a nominal interest rate and the inflation rate. The welfare implications of a simple two-period, consumer-optimization model are examined in detail and it is concluded that a schedule with the inflation rate as price will give correct welfare measures. The two-period analysis and the discussion of its extensions to more periods are found to shed light on the accuracy of using a nominal interest rate to measure the marginal value of money's services. Copyright 1987 by Ohio State University Press.

Date: 1987
References: Add references at CitEc
Citations:

Downloads: (external link)
http://links.jstor.org/sici?sici=0022-2879%2819871 ... 0.CO%3B2-G&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mcb:jmoncb:v:19:y:1987:i:4:p:469-83

Access Statistics for this article

Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West

More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().