search query: @author Ireland, P. / total: 4
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| Author: | Ireland, P. |
| Title: | Inflationary policy and welfare with limited credit markets |
| Journal: | Journal of Financial Intermediation
1994 : JUN, VOL. 3:3, p. 245-271 |
| Index terms: | WELFARE CREDIT MARKETS INFLATION POLICY |
| Language: | eng |
| Abstract: | This paper considers the costs and benefits of inflation using a stochastic version of Townsend's turnpike model in which agents of each type are allowed to remain at a trading post for multiple periods. NUmerical results show that moderate rates of inflation can be welfare-improving but only when private credit markets are extremely limited. More generally, the existence of private credit markets curtails the ability of inflationary policy to do both harm and good. |
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