Inflation, welfare and public goods

Gaetano Bloise, Sergio Currarini () and Nicholas Kikidis
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Nicholas Kikidis: Center for Operations Research and Econometrics (CORE), Université catholique de Louvain (UCL), Louvain la Neuve, Belgium

No 1998037, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: In this paper we study the welfare effects of monetary policy in a simple overlapping generation economy in which agents voluntary contribute to a public good. Inflation has two effects at equilibrium: it increases voluntary contributions and it misallocates private consumption across time. We show that the aggregate effect is welfare improving for “not too high” inflation rates. Moreover, there exists an optimal inflation rate

Keywords: public goods provision; overlapping generations; inflation. (search for similar items in EconPapers)
Date: 1998-06-01
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Related works:
Journal Article: Inflation, Welfare, and Public Goods (2002)
Working Paper: Inflation, welfare, and public goods (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:1998037

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