Sectoral Money Demand and the Great Disinflation in the United States
研究了美国从高通胀转向低通胀稳定时期，家庭和企业两个部门的货币需求变化，发现两个部门都从这一转变中获得了显著的福利收益。
Estimates of the welfare costs of inflation based on Bailey (1956) are typically computed using aggregate money demand models. Yet, the behavior of money demand may vary across sectors. Thus, the impact on welfare of inflation regime shifts may differ between households and firms. We specifically investigate the sectoral welfare implications of the shift from the Great Inflation to the present regime of low and stable inflation. For this purpose, we estimate different functional specifications of money demand for U.S. households and nonfinancial firms using flow‐of‐fund data covering four decades. We find that the benefits were significant for both sectors.