Abstract
The costs of inflation under the demand curve for money are vanishingly small since one deals only with currency, itself endogenous, because in Canada and other leading countries, non-interest bearing cash reserves as part of fiat money no longer exist. When the costs of inflation are said to be its effects on growth a model is developed in which a Monetary Authority, in attempting to preserve price stability, may generate a family of growth equilibria. Then, an effort to ensure price stability may well involve a lower rate of growth, thus complicating the calculations of the costs of inflation.
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