Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/70422
Authors: 
Erosa, Andrés
Ventura, Gustavo
Year of Publication: 
2000
Series/Report no.: 
Research Report, Department of Economics, University of Western Ontario 2000-1
Abstract: 
Evidence on the portfolio holdings and transaction patterns of households suggests that the burden of inflation is not evenly distributed. We build a monetary growth model consistent with key features of cross- sectional household data and use this framework to study the distributional impact of inflation. At the aggregate level, our model economy behaves similarly to standard monetary growth models within the representative agent abstraction. Inflation has, however, important distributional effects since it is effectively a regressive consumption tax. Thus, neglecting the distributional consequences of inflation may prove misleading in assessing the effects of inflation in our economy.
Subjects: 
Inflation
Heterogeneity
Distribution
JEL: 
E31
D30
Document Type: 
Working Paper

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