OUTCOME OF FREE-INTEREST DEPOSITS FOR WELFARE COST OF INFLATION: A THEORETICAL APPROACH

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MEHRBANI VAHID

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Journal: JOURNAL OF ISLAMIC ECONOMIC STUDIES Year:2012 | Volume:4 | Issue:2 (8) Page(s): 5-19

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Title

OUTCOME OF FREE-INTEREST DEPOSITS FOR WELFARE COST OF INFLATION: A THEORETICAL APPROACH

Author(s)

MEHRBANI VAHID | Issue Writer Certificate

Keywords

WELFARE COST OF INFLATIONQ2

INTEREST-FREE BANKINGQ2

DEPOSITQ2

Abstract

This study examines the outcomes of deleting interest of DEPOSITs in banking system on WELFARE COST OF INFLATION. Using neoclassical approach and dynamic optimization, shows that INTEREST-FREE BANKING not only leads to zero WELFARE COST OF INFLATION, but also is consistent with Friedman's rule about optimum quantity of money.

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APA: Copy

MEHRBANI, VAHID. (2012). OUTCOME OF FREE-INTEREST DEPOSITS FOR WELFARE COST OF INFLATION: A THEORETICAL APPROACH. JOURNAL OF ISLAMIC ECONOMIC STUDIES, 4(2 (8) ), 5-19. SID. https://sid.ir/paper/220839/en

Vancouver: Copy

MEHRBANI VAHID. OUTCOME OF FREE-INTEREST DEPOSITS FOR WELFARE COST OF INFLATION: A THEORETICAL APPROACH. JOURNAL OF ISLAMIC ECONOMIC STUDIES[Internet]. 2012;4(2 (8) ):5-19. Available from: https://sid.ir/paper/220839/en

IEEE: Copy

VAHID MEHRBANI, “OUTCOME OF FREE-INTEREST DEPOSITS FOR WELFARE COST OF INFLATION: A THEORETICAL APPROACH,” JOURNAL OF ISLAMIC ECONOMIC STUDIES, vol. 4, no. 2 (8) , pp. 5–19, 2012, [Online]. Available: https://sid.ir/paper/220839/en

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