Economics, Econometrics and Finance
4 years ago

Optimal inflation policy can boost consumption and improve welfare levels.

Journal of Monetary Economics
Optimal inflation policy
Lawrence H. Summers

Paper Summary

Related papers

Economics, Econometrics and Finance
a year ago

Money drives inflation: Imbalances in markets fuel rising prices.

Macroeconomic Trends
1 view
Economics, Econometrics and Finance
3 years ago

Monetary Policy Shifts Shake Up Global Currency Markets

Macroeconomic Analysis
Oil Price Shocks
International Finance
2 views
Economics, Econometrics and Finance
4 years ago

Tight Monetary Policy Hurts Emerging Economies More Than Loose Policy

Oil Price Shocks
Macroeconomic Analysis
Environmental Impact
2 views

The article discusses how the best inflation policy involves balancing the negative effects of high inflation on cash holdings with the positive effects on capital intensity. Ignoring the impact of inflation on capital intensity can lead to incorrect policy recommendations. The study suggests that optimal inflation policy depends on the specific characteristics of the economy, including financial intermediation and taxation.