Welfare cost of inflation

[1][2] This approach measures the welfare cost by computing the appropriate area under the money demand curve.

Lucas (2000) revised his estimate upward, to slightly less than 1 percent of GDP.

[5] Ireland (2009) extends this line of analysis to study the recent behavior of U.S. money demand.

Cooley and Hansen (1989) calibrate a cash-in-advance version of a business cycle model.

[9][10][11][12] Craig and Rocheteau (2008) argue that a search-theoretic framework is necessary for appropriately measuring the welfare cost of inflation.