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dc.contributor.authorAshraf, Quamrulen_US
dc.contributor.authorGershman, Borisen_US
dc.contributor.authorHowitt, Peteren_US
dc.description.abstractWe use an agent-based computational approach to show how inflation can worsen macroeconomic performance by disrupting the mechanism of exchange in a decentralized market economy. We find that increasing the trend rate of inflation above 3 percent has a substantial deleterious effect, but lowering it below 3 percent has no significant macroeconomic consequences. Our finding remains qualitatively robust to changes in parameter values and to modifications to our model that partly address the Lucas critique. Finally, we contribute a novel explanation for why cross-country regressions may fail to detect a significant negative effect of trend in ation on output even when such an effect exists in reality.en_US
dc.publisherBrown University, Department of Economics Providence, RIen_US
dc.relation.ispartofseriesWorking Paper, Brown University, Department of Economics 2012-4en_US
dc.subject.keywordagent-based computational modelen_US
dc.subject.keywordprice dispersionen_US
dc.subject.keywordfirm turnoveren_US
dc.subject.stwMakroökonomischer Einflussen_US
dc.subject.stwGesamtwirtschaftliche Produktionen_US
dc.subject.stwNeue klassische Makroökonomiken_US
dc.titleHow inflation affects macroeconomic performance: An agent-based computational investigationen_US
dc.typeWorking Paperen_US
Appears in Collections:Working Papers, Department of Economics, Brown University

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