Some Costs and Benefits of Price Stability in the United Kingdom

  title={Some Costs and Benefits of Price Stability in the United Kingdom},
  author={Hasan Bakhshi and Andrew G. Haldane and Neal Hatch},
  journal={ERN: Banking \& Monetary Policy (Topic)},
In a previous attempt to articulate the costs of inflation (Leigh-Pemberton (1992)), the Bank of England outlined the following costs of a fully-anticipated inflation: - the cost of economising on real money balances -- so-called shoe-leather' effects; - the costs of operating a less-than-perfectly indexed tax system; - the costs of front-end loading' of nominal debt contracts; - the cost of constantly revising price lists -- so called menu costs' Feldstein (1996) quantified the first two of… 

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