Seigniorage and the welfare cost of inflation in Colombia Seigniorage and the welfare cost of inflation in Colombia Martha López * Mayo de 2000
Martha Rosalba López
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In a small macroeconomic model of the Colombian economy I investigate the problem of selecting a policy rule that is consistent with inflation targeting. I spell out the characteristics of the optimal feedback and output parameters in the rule, as well as for the optimal forecasting horizon for…
