Time inconsistency and the long-run effects of inflation

Recent work by Laibson (1997) identifies that individuals’ time discount factors evolve over time. This leads to a time-inconsistency problem in which savings are distorted. This paper studies the long-run effects of inflation in the presence of a time-inconsistency problem.

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Year of publication:	2013
Authors:	Boulware, Karl David ; Reed, Robert R. ; Ume, Ejindu
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 120.2013, 2, p. 267-270
Publisher:	Elsevier
Subject:	Inflation \| Hyperbolic discounting \| Time inconsistency

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Type of publication:	Article
Classification:	E41 - Demand for Money ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; E21 - Consumption; Saving
Source:	RePEc - Research Papers in Economics

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