Transaction services, inflation, and welfare

S. Aiyagari, R. Braun and Zvi Eckstein ()

No 241, Staff Report from Federal Reserve Bank of Minneapolis

Abstract: This paper is motivated by empirical observations on the comovements of currency velocity, inflation, and the relative size of the credit services sector. We document these comovements and incorporate into a monetary growth model a credit services sector that provides services that help people economize on money. Our model makes two new contributions. First, we show that direct evidence on the appropriately defined credit service sector for the United States is consistent with the welfare cost measured using an estimated money demand schedule. Second, we provide welfare cost of inflation estimates that have some new features.

Keywords: Welfare; Inflation (Finance) (search for similar items in EconPapers)
Date: 1998
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (61)

Published in Journal of Political Economy (Vol. 106, No. 6, December 1998, pp. 1274-1301)

Downloads: (external link)
https://www.minneapolisfed.org/research/sr/sr241.pdf Full Text (application/pdf)

Related works:
Journal Article: Transaction Services, Inflation, and Welfare (1998)
Working Paper: Transaction services, inflation, and welfare (1995)
Working Paper: Transaction Services, Inflation and Welfare (1995)
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:fip:fedmsr:241

Access Statistics for this paper

More papers in Staff Report from Federal Reserve Bank of Minneapolis Contact information at EDIRC.
Bibliographic data for series maintained by Kate Hansel ().