US overestimates welfare costs of inflation: Bank of Italy paper

bank-of-italy

A Bank of Italy paper published on Wednesday says failure to account for currency held by non-residents may lead to a significant overestimation of the welfare costs associated with inflation in the United States.

The paper's authors, Alessandro Calza and Andrea Zaghini, present new evidence on the shoe-leather costs of inflation using monetary data adjusted for the circulation of currency abroad. They note that the data on M1 - a broad money aggregate which includes physical currency such as

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: