Economics, Econometrics and Finance
8 years ago

Reducing Inflation Could Increase Real Income by Almost One Percent.

Econometrica
Inflation and Welfare
Robert Lucas

Paper Summary

Related papers

Business, Management and Accounting
4 years ago

Low interest rates lead to higher private savings in developing countries.

Retirement Planning
Infrastructure Impact
Health Care Expenditure
2 views
Economics, Econometrics and Finance
4 years ago

Credit crunches could bring deflation, forcing central banks to lower rates.

Monetary Models
Macroeconomic Analysis
Macroeconomic Trends
2 views
Economics, Econometrics and Finance
6 years ago

The Economy's Future Interest Rates Revealed: Impact on Savings and Investments

Macroeconomic Trends
2 views

The article discusses the impact of inflation on people's well-being. By analyzing data from the U.S. between 1900 and 1994, researchers found that reducing inflation from 10 percent to zero could increase real income by almost one percent. However, it's challenging to accurately estimate the benefits of further reducing inflation to zero nominal interest rates.