Seigniorage and the Welfare Cost of Inflation in Colombia

Borradores de Economia
Número: 
151
Publicado: 
Clasificación JEL: 
E31
Palabras clave: 
Welfare, Cost, Inflation

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We compute both seigniorage rate and welfare cost of inflation rate in Colombia using a Sidrauski-type model in which preferences are separable functions of the service flows of non-durable goods and money holdings. The set of the estimated paramete