The n-dimensional Bailey-Divisia measure as a general-equilibrium measure of the welfare costs of inflation

► Bailey's welfare measure may be obtained as an exact general-equilibrium measure of the welfare costs of inflation. ► In economies with several monies Bailey's measure has to be adapted to an n-dimensional Divisia-index context. ► The Bailey-Divisia integral may also emerge as an exact general-equilibrium measure, provided preferences are quasilinear.