Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/155175
Authors: 
Bloise, Gaetano
Currarini, Sergio
Kikidis, Nicholas
Year of Publication: 
2001
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 12.2001
Abstract: 
In this paper we study the welfare effects of monetary policy in a simple overlapping generation economy in which agents voluntarily contribute to a public good. Inflation has two effects at equilibrium: it increases voluntary contributions and it misallocates private consumption across time. We show that the aggregate effect is welfare-improving for "not too large" inflation rates. Moreover, there exists an optimal inflation rate.
Subjects: 
Optimal inflation
public goods
voluntary contributions
JEL: 
H41
E52
D91
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.