Inflation and Cash

Vladimir A. Popov

Abstract


Cash demand is investigated by means of mathematical analysis. The optimal cash amount a person needs in order to minimize the effect of inflation and maximize percent money is given here. The corresponding number of cash transfers for a period is calculated. The corresponding formulas are presented and proved.

Keywords


Baumol-Tobin formula, cash withdrawal, average cash, cash demand, inflation rate.

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ISSN: 1929-7092