The varying interest elasticity and the cost of inflation in India

Sudhanshu Kumar ()

Applied Economics Letters, 2014, vol. 21, issue 7, 497-500

Abstract: This article estimates the welfare cost of inflation in India using the time-varying interest semi-elasticity from the money demand schedule. The estimated interest semi-elasticity and the welfare cost of inflation for India show variation over time. The result suggests increasing welfare cost of inflation for Indian economy in recent times.

Date: 2014
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DOI: 10.1080/13504851.2013.870643

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