000 01999nam  2200289za 4500
0019.862201
003CaOODSP
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008180920s2018    oncd    ob   f000 0 eng d
040 |aCaOODSP|beng
041 |aeng|bfre
0861 |aFB3-5/2018-40E-PDF
24504|aThe welfare cost of inflation revisited |h[electronic resource] : |bthe role of financial innovation and household heterogeneity / |cby Shutao Cao … [et al.].
260 |a[Ottawa] : |bBank of Canada, |c2018.
300 |aii, 51 p. : |bcol. charts.
4901 |aBank of Canada staff working paper, |x1701-9397 ; |v2018-40
500 |a"August 2018."
504 |aIncludes bibliographical references (p. 41-42).
520 |a"This paper calculates the welfare cost of inflation by focusing on distortions and costs that inflation poses on households who use money for transactions to avoid alternative means of payment and on the losses inflicted on the holders of public debt arising from unexpected inflation. In doing so, we take into account of the role of financial innovation that reduces over time the dependence of households on money to make transactions. We find a sizable aggregate welfare cost of money holdings, but lower than those found in previous studies. The difference mainly comes from the incorporation of financial innovation in our studies. Across households, the old and middle-aged and the poor face higher costs from inflation much more than the young and the rich. Costs are expected to be lower for future generations due to financial innovation"--Non-technical summary.
546 |aIncludes abstract in French.
69207|2gccst|aInflation
69207|2gccst|aStandard of living
7001 |aCao, Shutao.
7102 |aBank of Canada.
830#0|aStaff working paper (Bank of Canada)|x1701-9397 ; |v2018-40.|w(CaOODSP)9.806221
85640|qPDF|s793 KB|uhttps://publications.gc.ca/collections/collection_2018/banque-bank-canada/FB3-5-2018-40-eng.pdf