Table 4 Welfare costs of monetary shocks...

Table 4

Welfare costs of monetary shocks

	${\bar{π}}^{*} = {1.02}^{0.25}$		${\bar{π}}^{*} = {1.06}^{0.25}$
Welfare cost		0.015%		0.069%
Welfare	−213.03	−213.05	−219.08	−219.22
$U_{d}$	−211.15	−211.15	−212.11	−212.11
$U_{l}$	−0.43	−0.45	−4.81	−4.95
$U_{v}$	−1.44	−1.45	−2.16	−2.16
$C_{S S}$	0.82	0.82	0.81	0.81
$H_{S S}$	1.05	1.05	1.05	1.05
E(C)*	−0.34	−0.36	−0.01	0.04
E(H)*	0.01	0.01	0.06	0.17
100 $σ_{C}$	1.66	1.66	1.33	2.01
100 $σ_{H}$	1.63	1.63	1.95	1.95

	${\bar{π}}^{*} = {1.02}^{0.25}$		${\bar{π}}^{*} = {1.06}^{0.25}$
Welfare cost		0.015%		0.069%
Welfare	−213.03	−213.05	−219.08	−219.22
$U_{d}$	−211.15	−211.15	−212.11	−212.11
$U_{l}$	−0.43	−0.45	−4.81	−4.95
$U_{v}$	−1.44	−1.45	−2.16	−2.16
$C_{S S}$	0.82	0.82	0.81	0.81
$H_{S S}$	1.05	1.05	1.05	1.05
E(C)*	−0.34	−0.36	−0.01	0.04
E(H)*	0.01	0.01	0.06	0.17
100 $σ_{C}$	1.66	1.66	1.33	2.01
100 $σ_{H}$	1.63	1.63	1.95	1.95

Note(s): *Expressed as a percentage deviation from the deterministic steady-state. $U_{d}$ ⁠, $U_{l}$ and $U_{v}$ are the deterministic steady-state, level and volatility components, respectively

Source(s): Author's calculation

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