MARC Record from Library of Congress

LEADER: 01955cam a22003017a 4500
001 2006615505
003 DLC
005 20061003090548.0
007 cr |||||||||||
008 061002s2005 vau sb f000 0 eng
010 $a 2006615505
040 $aDLC$cDLC
043 $an-us---
050 00 $aHB1
100 1 $aEnnis, Huberto M.
245 10 $aAvoiding the inflation tax$h[electronic resource] /$cHuberto M. Ennis.
260 $a[Richmond, Va.] :$bFederal Reserve Bank of Richmond,$c[2005]
490 1 $aWorking paper ;$vno. 05-10
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on Oct. 2, 2006.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"I study the effects of inflation on the purchasing behavior of buyers in an economy where money is essential for certain transactions (as in Lagos and Wright, 2005). A long-standing intuition in this subject is that when inflation increases, agents try to spend their money holdings more speedily. The standard framework fails to capture this kind of effect (Lagos and Rocheteau, 2005). I propose a simple modification of the model in which trading of goods and rebalancing of money holdings happen less frequently. In such a framework, I show that higher inflation induces buyers to search for transactions more intensively and buy goods of worse quality. The modification proposed also sheds new light on the connection between the search-theoretic and the inventory-theoretic models of money."--Federal Reserve Bank of Richmond web site.
653 $amoney;$arandom matching;$asearch intensity;$agoods' quality
710 2 $aFederal Reserve Bank of Richmond.
830 0 $aWorking paper (Federal Reserve Bank of Richmond : Online) ;$vno. 05-10.
856 40 $uhttp://www.richmondfed.org/publications/economic_research/working_papers/years.cfm/2005