01513cas a2200241 a 4500 AALejournalIMF008010 230101c9999 xx r poo 0 0eng d 15.00 USD 9781451930801 1020-7635 BD-DhAAL BD-DhAAL International Monetary Fund. Research Dept. IMF Staff papers : Volume 38 No. 4. Washington, D.C. : International Monetary Fund, 1991. 1 online resource (276 pages) IMF Staff 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 The welfare effects of mitigating the costs of inflation are examined. In a model where money reduces transactions costs, a fall in inflation costs is equivalent to financial innovation. This can be caused by paying interest on deposits, indexing money, or 'dollarizing.' Results indicate that financial innovation raises welfare in low-inflation economies while reducing it in high-inflation economies because of the offsetting indirect effect of higher inflation to finance the budget. Mode of access: Internet IMF Staff Papers; IMF Staff Papers ; No. 1991/003 Full text available on IMF http://elibrary.imf.org/view/journals/024/1991/003/024.1991.issue-003-en.xml IMF e-Library