Inflation and Cash

Authors

  • Vladimir A. Popov Financial University, Moscow

Keywords:

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

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.

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Published

2018-03-09

Issue

Section

Special Issue - RECENT DEVELOPMENT OF CAPITAL STRUCTURE THEORY AND ITS APPLICATIONS