Inflation and Welfare

Robert Lucas

Chapter 4 in Monetary Theory as a Basis for Monetary Policy, 2001, pp 96-142 from Palgrave Macmillan

Abstract: Abstract In a monetary economy, it is in everyone’s private interest to try to get someone else to hold non-interest-bearing cash and reserves. But someone has to hold it all, so these efforts must simply cancel out. All of us spend several hours per year in this effort, and employ thousands of talented and highly-trained people to help us. These person-hours are simply thrown away, wasted on a task that should not have to be performed at all.

Keywords: Interest Rate; Monetary Policy; Money Demand; Nominal Interest Rate; Cash Holding (search for similar items in EconPapers)
Date: 2001
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DOI: 10.1007/978-1-4039-3961-6_4

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