01780cas a2200241 a 4500 AALejournalIMF008001 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451977776 1018-5941 BD-DhAAL BD-DhAAL Hamann, A. The Optimal Rate of Money Creation in an Overlapping Generations Model : Numerical Simulations for the U.S. Economy / A. Hamann. Washington, D.C. : International Monetary Fund, 1992. 1 online resource (52 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper develops a large scale overlapping generations model and calibrates it for the U.S. economy. Simulations with the model show that the steady state welfare maximizing inflation rate may be positive, although the numerical results are not robust. It is also shown, however, that increases in the inflation rate are never Pareto efficient because during the transition to the new steady state at least some generations are made worse-off. Using an optimality criterion that takes into account the welfare of all generations, it is found that implementing Friedman's rule is a Pareto superior policy, and that the efficiency gains derived from implementing such rule could be substantial. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1992/037 Full text available on IMF http://elibrary.imf.org/view/journals/001/1992/037/001.1992.issue-037-en.xml IMF e-Library