Shoe‐leather Costs Reconsidered
Bibliographic Data
| ID | 9715680 |
|---|---|
| Authors | Jagjit S Chadha (0000-0001-7549-9027, Bank of England), Andrew G Haldane (Bank of England), Andrew Haldane, Norbert G J Janssen (Bank of England), Norbert Janssen |
| Year | 1998 |
| Volume | 108 |
| Issue | 447 |
| Pages | 363-382 |
| Publication date | 1998-03-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | The Economic Journal (JOURNAL) |
| Journal identifiers | ISSN: 0013-0133 • E-ISSN: 1468-0297 |
| Publisher | Oxford University Press (OUP) (PUBLISHER) |
| DOI | 10.1111/1468-0297.00292 |
| OpenAlex | W3122744394 |
| Language | EN |
It has recently been suggested by Robert Lucas that `shoe-leather' costs of inflation may amount to as much as 1% of GNP in the United States. This paper assesses the UK evidence for the period 1970-1994. Similar estimates to those of Lucas are found using his original specification, but a preferred functional form using a semi-log interest elasticity of demand for money reveals a 0.22 % of GNP gain in perpetuity following a sustained fall in nominal interest rates from 6% to 2
Econometrics · Economics · Elasticity (physics · Inflation (cosmology · Interest rate · Microeconomics · Monetary economics · Perpetuity · Price elasticity of demand · Economic Theory and Policy · Finance · Fiscal Policy and Economic Growth · Monetary Policy and Economic Impact
| Highly cited | No |
|---|