Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/62624 
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dc.contributor.authorAshraf, Quamrulen
dc.contributor.authorGershman, Borisen
dc.contributor.authorHowitt, Peteren
dc.date.accessioned2012-07-11-
dc.date.accessioned2012-09-17T11:31:25Z-
dc.date.available2012-09-17T11:31:25Z-
dc.date.issued2012-
dc.identifier.urihttp://hdl.handle.net/10419/62624-
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
dc.language.isoengen
dc.publisher|aBrown University, Department of Economics |cProvidence, RIen
dc.relation.ispartofseries|aWorking Paper |x2012-4en
dc.subject.jelC63en
dc.subject.jelE00en
dc.subject.jelE31en
dc.subject.jelE50en
dc.subject.ddc330en
dc.subject.keywordagent-based computational modelen
dc.subject.keywordinflationen
dc.subject.keywordprice dispersionen
dc.subject.keywordfirm turnoveren
dc.subject.stwInflationen
dc.subject.stwMakroökonomischer Einflussen
dc.subject.stwGesamtwirtschaftliche Produktionen
dc.subject.stwNeue klassische Makroökonomiken
dc.titleHow inflation affects macroeconomic performance: An agent-based computational investigation-
dc.typeWorking Paperen
dc.identifier.ppn719197198en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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