Rebalancing Frequency and the Welfare Cost of Inflation
研究发现，固定周期再平衡模型会低估通胀的福利成本；当代理人可以自主选择债券与货币的交换频率时，10%通胀的福利成本从收入的0.1%升至1%。
Cash-in-advance models usually require agents to reallocate money and bonds in fixed periods. Every month or quarter, for example. I show that fixed periods underestimate the welfare cost of inflation. I use a model in which agents choose how often they exchange bonds for money. In the benchmark specification, the welfare cost of 10 percent instead of 0 inflation increases from 0.1 percent of income with fixed periods to 1 percent with optimal periods. The results are robust to different preferences, to different compositions of income in bonds or money, and to the introduction of capital and labor.