SEIGNIORAGE AND THE WELFARE COST OF INFLATION IN COLOMBIA

Martha López

No 3488, Borradores de Economia from Banco de la Republica

Abstract: We compute both seigniorage rate and welfare cost of inflation rate in Colombia using a Sidrauski-type model in which preferences are separable functions of the service flows of non-durable goods and money holdings. The set of the estimated parameters imply sizeable welfare cost of inflation and seigniorage rates. However, eventhough for low inflation rates seigniorage rate markedly increases with the rate of inflation, for very high inflation rates it reaches an asymptote.

Pages: 16
Date: 2000-07-31
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Seigniorage and the Welfare Cost of Inflation in Colombia (2001)
Journal Article: Seigniorage and the welfare cost of inflation in Colombia (2001)
Working Paper: Seigniorage and the Welfare Cost of Inflation in Colombia (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000094:003488

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