Rebalancing Frequency and the Welfare Cost of Inflation

摘要: Cash-in-advance models usually require agents to reallocate money and bonds in fixed periods, every month or quarter, for example. I show that periods underestimate the welfare cost of inflation. use a model which choose how often they exchange money. In benchmark specification, ten percent instead zero inflation increases from 0.1 income with one optimal periods. The results are robust different preferences, compositions money, introduction capital labor. JEL codes: E3, E4, E5