The Costs of Inflation

Macroeconomics of inflation is an existing field. Old and new techniques are implemented here, and new theories are checked and reconsidered. One of the main topics of this field is to have a clear idea on the costs of inflation, as well as what mechanisms underlying the association between inflation and poor economic performance, more evident in developing countries. They have experienced long run periods of high inflation and economic stagnation. Hence, inflation should be always a priority in the agenda of economic policy, but especially in developing-high inflation countries. In this sense, the motivation of this book is to contribute with updated evidence on the costs of inflation, through its effect on the price system, in economies with different level of development, which are clearly associated to different inflationary experiences. This book contains a vast recompilation of research on that subject of the last two decades. It is fruit of the initial work carried out in my doctoral thesis and posterior investigations, which have encompassed a wider sample of cases. This book is especially useful for academics and policimakers specializing on inflation processes.