Since bank deposits and currency are substitutes and banks have monopoly power, higher nominal interest rates lead to …

, suffer a loss, that is not offset by gains to the monopolist. This is the "deadweight loss" from monopoly, and in … conventional analysis the only social cost of monopoly. The loss suffered by those who continue to buy the product at the higher … cost is regarded merely as a transfer from consumers to owners of the monopoly seller and has not previously been factored …

This paper discusses the problems facing the Mexican economy. It operates under a heavy burden of monopoly and … stress in Mexico and this retards the growth of skills of its workforce. (2) The informal sector is large, mostly due to the … heavy burden of monopoly and regulation. We find little evidence that the introduction of social protection programs for …

of a small open economy calibrated to Mexico's 1987-1994 stabilization plan. In the model a time-variant interest rate …