Does Inequality Cause Inflation?: The Political Economy of Inflation, Taxation and Government Debt.

B-Tier
Journal: Public Choice
Year: 1996
Volume: 87
Issue: 1-2
Pages: 143-62

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

A democratic society in which the distribution of wealth is unequal elects political parties that are likely to represent the interests of poor people. It is in the interests of the clientele of the resulting governments to attempt to levy inflation taxes in order to erode the real value of debt service and redistribute from the rich to the poor. Consequently, inequality and high levels of nominal government debt sow the seeds for inflation. Some cross-country evidence for this proposition is provided. Copyright 1996 by Kluwer Academic Publishers

Technical Details

RePEc Handle
repec:kap:pubcho:v:87:y:1996:i:1-2:p:143-62
Journal Field
Public
Author Count
2
Added to Database
2026-01-24