曼昆宏观经济学第三十章.ppt

* * * * * Align text for second bullet. * * * * The equation of the fisher effect must appear here or on a new next slide: “Nominal interest rate = real interest rate + inflation rate” * * * * * * * * * * * * * * * * * I believe this slide is out of place. It belongs in the previous chapter. Delete it here. THE COSTS OF INFLATION A Fall in Purchasing Power? Inflation does not in itself reduce people’s real purchasing power. THE COSTS OF INFLATION Shoeleather costs Menu costs Relative price variability Tax distortions Confusion and inconvenience Arbitrary redistribution of wealth Shoeleather Costs Shoeleather costs are the resources wasted when inflation encourages people to reduce their money holdings. Inflation reduces the real value of money, so people have an incentive to minimize their cash holdings. Shoeleather Costs Less cash requires more frequent trips to the bank to withdraw money from interest-bearing accounts. The actual cost of reducing your money holdings is the time and convenience you must sacrifice to keep less money on hand. Also, extra trips to the bank take time away from productive activities. Menu Costs Menu costs are the costs of adjusting prices. During inflationary times, it is necessary to update price lists and other posted prices. This is a resource-consuming process that takes away from other productive activities. Relative-Price Variability and the Misallocation of Resources Inflation distorts relative prices. Consumer decisions are distorted, and markets are less able to allocate resources to their best use. Inflation-Induced Tax Distortion Inflation exaggerates the size of capital gains and increases the tax burden on this type of income. With progressive taxation, capital gains are taxed more heavily. Inflation-Induced Tax Distortion The income tax treats the nominal interest earned on savings as income, even though part of the nominal interest rate merely compensates for inflation. The after-tax real interest rate falls, mak