Doepke, Matthias; Schneider, Martin - Institut für Schweizerisches Bankwesen <Zürich> - 2007
Episodes of unanticipated inflation reduce the real value of nominal claims and thus redistribute wealth from lenders to … borrowers. In this study, we consider redistribution as a channel for aggregate and welfare effects of inflation. We model an … inflation episode as an unanticipated shock to the wealth distribution in a quantitative overlapping-generations model of the U …